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Sharerock Compsoy operates swmall factory in which it munufakcures two products: A and B. Production and sles recaits for thin yew were as follows For

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Sharerock Compsoy operates swmall factory in which it munufakcures two products: A and B. Production and sles recaits for thin yew were as follows For purposes of simplitity the firt averages tosal fxcd costs oyer the teral number of anits of A and 0 groduced and selit. For purposes of simplicity, the firm averages total fixed costs over the totat number of units of A and B procuced and sold. The research department has developed a new product (C) as a replacement for product B. Market studies show that Shamrock Compary could sell 11.450 units of C next year at a price of $120; the variable costs per unit af C are $46. The introduction of product C will lead to a 10x increase in demand for product A and discontinuatian of product B. If the company does not untroduce the new product, it texpects next year's results to be the same as this year's. Determine whether Shamrock Compary should introduce product C next vear, Why of wiyy not? Comnanv orofit with Products A and B : Company profit with Products A and B: Comnam nrofit with Products A and C

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