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Note: You MUST completely explain your rationale in order for any partial credit to be given. Write both your calculations and reasoning clearly. (Round partial

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Note: You MUST completely explain your rationale in order for any partial credit to be given. Write both your calculations and reasoning clearly. (Round partial units upward. Round percentages to one decimal point. Round currency to dollars and cents.) Video Concepts, Inc. (VCI) manufactures a line of micro digital video cameras (DVCs) that are distributed to large retailers. The line consists of three models of DVCs. The following data is available regarding the models: Model Model DX 1 DVR Selling Variable Price per Unit Cost per Unit $735 $215 $415 $110 $515 $105 $615 $135 Demand/Year (units) 1,535 2,865 3,535 Model DX 2 Model DX 3 Model DX 4 3,300 VCI is considering the addition of a fifth model to its line of DVCs. This model would be sold to retailers for $675. The variable cost of this unit is $315. The demand for the new Model DX 5 is estimated to be 2,000 units per year. Sixty percent of these unit sales of the new model is expected to come from other models already being manufactured by VCI (20 percent from Model DX 1, 40 percent from DX 2.20 percent from Model DX 3, and 20 percent from Model DX 4). VCI will incur a fixed cost of $250,000 to add the new model to the line. Based on the preceding data, should VCI add the new Model DX5 to its line of DVCs? Why or Why not? (Please type all calculation details)

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