Straus Company operates a small factory in which it manufactures two products: A and B. Production and sales results for this year were as follows Units sold Selling price per unit $93 Variable costs per unit50 Fixed costs per unit 8,500 18,000 $75 48 20 20 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 sell 9,500 units of C next year at a price of $118; the variable costs per unit of C are $45. 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 n product, it expects next year's results to be the same as this years. Determine whether Straus Company should introduce product C next year. Why or why not? Company profit with Products A and B: Company profit with Products A and B: Total Company profit with Products A and C: Total Straus Company introduce product C next year as the contribution margin