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Oriole Company operates a small factory in which it manufactures two products: A and B. Production and sales result for last year were as

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Oriole Company operates a small factory in which it manufactures two products: A and B. Production and sales result for last year were as follow: A B Units sold 7,040 14,080 Selling price per unit 65 52 Unit variable cost 35 30 Unit fixed cost 15 15 15 For purposes of simplicity, the firm allocates 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 Oriole Company could sell 9,080 units of C next year at a unit selling price of $80. The unit variable cost of C is $39. 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 result to be the same as last year's. Calculate the net profit before the introduction of Product C Net Profit S Calculate the net profit before the introduction of Product C Net Profit. Calculate the net profit if Oriole Company introduces Product C Net Profit $ Should Oriole Introduce product C?

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