Tharp Company operates a small factory in which it manufactures two products: C and D. Production and sales results for last year were as follows. C D Units sold 9,200 19,200 Selling price per unit $94 $76 Variable cost per unit 51 42 Fixed cost per unit 23 23 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 Tharp Company could sell 11,900 units of E next year at a price of $116; the variable cost per unit of E is $43. 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