[The following information applies to the questions displayed below.] Martinez, Inc., is a small firm involved in the production and sale of electronic business products. The company is well known for its attention to quality and innovation During the past 15 months, a new product has been under development that allows users handheld access to e-mail and video images. Martinez named the product the Wireless Wizard and has been quietly designing two models: Standard and Enhanced Development costs have amounted to $204,000 and $285,000, respectively. The total market demand for each model is expected to be 55,000 units, and management anticipates being able to obtain the following market shares: Standard, 30 percent; Enhanced, 25 percent. Forecasted data follow Standard Enhanced $ 420.00 $ 520.00 Projected selling price Production costs per unit: 5700 30.00 51.00 90.00 45.00 63.00 Direct material Direct labor Variable overhead Marketing and advertising per 210,000 375,000 93,000 product line 93,000 Sales salaries per product line Sales commissions* 15% 20% Computed on the basis of sales dollars Since the start of development work on the Wireless Wizard, advances in technology have altered the market somewhat, and management now believes that the company can introduce only one of the two models. Consultants confirmed this fact not too long ago, with Martinez paying $36,000 for an in-depth market study. The total fixed overhead is expected to be the same regardless of which product is manufactured 3-a. Prepare a financial analysis and determine which of the two models should be introduced. Standard Enhanced Total contribution margin Income 3-b. The company would be advised to select the Standard model Enhanced model 4. What other factors should Martinez consider before a final decision is made? (Select all that apply.) Possibility of merger of the firm with a bigger player Growth potential of the Standard and Enhanced models Competitive products in the marketplace Aesthetic differences between the two products Break-even points Data validity Previous years' sales trends Production feasibility Effects, if any, on existing product sales