The following information applies to the questions displayed below.] Martinez, Inc., Is a small firm Involved In the production and sale of electronic buslness 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-mall 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 $202,500 and $283,500, respectively. The total market demand for each model Is expected to be 54,000 units, and management anticlpates belng able to obtaln the following market shares: Standard, 25 percent; Enhanced 20 percent. Forecasted data follow Standard Enhanced $ 415.00 515.00 Projected selling price Production costs per unit 56.00 29.50 50.00 209,000 92,500 Direct material 88.50 44.00 62.00 370,000 92,500 Direct labor Varlable overhead Marketing and advertising per product line Sales salarles per product line Sales commissions 10% 10% 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 belleves that the company can Introduce only one of the two models. Consultants confirmed this fact not too long ago, with Martinez paying $35,900 for an in-depth market study. The total fixed overhead Is expected to be the same regardless of which product is manufactured