Should Sheffield Limited introduce the Sheffield Soil Test Kit?

The Inventory Manager is considering introducing a new product to Sheffield Limited the Sheffield soil test kit. The kit would sell for $400 per unit, have variable manufacturing costs of $120 per unit, and variable selling costs of $40 per unit. Market analysis suggests Sheffield Limited could sell 200 units per month. The companys monthly fixed expenses are $36,000. The tax rate is 30% and Sheffield Limited have a targeted before-tax profit for the product of $16,000 per month.