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Kingbird Company operates a small factory in which it manufactures two products: A and B. Production and sales results for this year were as follows:

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Kingbird Company operates a small factory in which it manufactures two products: A and B. Production and sales results for this year were as follows: For purposes of simplicity, the firm averages total fixed costs over the total number of units of A and B produced and sold. The research department has developed a new product (C) as a replacement for product B. Marlict studtes show that icingbird Company could sell 10,400 units of C next year at a price of $124; the variable costs per unit of C are $48. The introduction of product C. will lead to a 10xincrease indemand for product A and discontinuation of product B, If the company does not introduce the new product, it expects next year's results to be the same as this year's. Determina whether Kinghird Company should Introduce product Criext year: Why or why not? Comoanv orofit with Products A and B: Company profit with Products A and C : Kingbird Company introduce product C next year as the contribution margin

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