Straus Company operates a smal 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 19,300 Selling price per unit $93 $76 Variable costs per unit 55 52 Fixed costs per unit 22 22 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 Straus Company could sel 10,250 units of C next year at a price of $122; the variable costs per unit of Care $47. The introduction of product 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 Straus Company should introduce product next year. Why or why not? Company profit with Products A and B. B Total Company profit with Products A and c: A c Total 12 Question 25 Straus Company Introduce product C next year as the contribution margin