Novak Company operates a small factory in which it manufactures two products: A and B. Production and sales results for this year were as follows: A B Units sold 9,400 18,900 Selling price per unit $97 $76 Variable costs per unit 55 48 Fixed costs per unit 23 23 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. Market studies show that Novak Company could sell 9,900 units of C next year at a price of $122; the variable costs per unit of C are $47. The introduction of product C will lead to a 10% increase in demand 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. Determine whether Novak Company should introduce product C next year. Why or why not? Company profit with Products A and B: Total