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Projections made by an independent marketing research firm indicate that the MC9000-X would achieve a sales volume of 500,000 units next year, its first year

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Projections made by an independent marketing research firm indicate that the MC9000-X would achieve a sales volume of 500,000 units next year, its first year of commercialization. One-half of the first year's volume would come from buyers switching from the competition's professional computers and from new market growth. However, the consumer research study indicates that 30 percent of the MC9000-X sales volume would come from Melrose's higher-priced Mc9000-0mega professional computer, which sells for $5,900 (with unit variable costs of S2,200j. The other 20 percent of the MC9000-X sales volume would come from the cconomy-priccd MC9000-Alpha professional computer, priced at $2,500 (with unit variable costs of SI,200). Prior to any decision to proceed with the introduction of the new midsized model, the MC9000-C)mcga unit volume was cxpcctcd to be 400,000 units next year, and the MC9000-Alpha was cxpcctcd to achieve a 600,000 unit sales level. The fixed costs of launching the midsized MC9000-X have been forecast to be $2 million during the first year of commercialization. Should Mr. Barrister add the MC9000-X model to the line of personal computers? Explain why or why not

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