Sunland Company operates a small factory in which it manufactures two products: C and D. Production and sales results for last year were as follows. Units sold Unit selling price Unit variable costs Unit fixed costs C 8,800 $94 49 23 Net profit with products.C & D D Net profit with products C & E 19,100 $77 For purposes of simplicity, the firm averages total fixed costs over the total number of units of C and D produced and sold. The research department has developed a new product (E) as a replacement for product D. Market studies show that Sunland Company could sell 11,000 units of E next year at a price of $117; unit variable costs of E are $41. The introduction of product E will lead to a 12% increase in demand for product C and discontinuation of product D. If the company does not introduce the new product, it expects next year's results to be the same as last year's. Compute company profit with products C & D and with products C & E. $ $ 41 23 441,900 636,608

Sunland Company operates a small factory in which it manufactures two products: C and D. Production and sales results for last year were as follows. For purposes of simplicity, the firm averages total fixed costs over the total number of units of C and D produced and sold. The research department has devetoped a new product (E) as a replacement for product D. Market studtes show that Suntand Company could sell 11,000 units of E next year at a price of $117; unit variable costs of E are $41. The introduction of product E will lead to 312% increase in demand for product C and discontinuation of product D. If the company does not introduce the new product. it expects next year's results to be the same as last vear's. Compute company profit with products C \& D and withproducts C \& E. Net profit with products C \& D Net profit with products C \& E \$