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The other drop down menu are the same as the ones on the screenshots so i did not screenshot them again. You can choose form

The other drop down menu are the same as the ones on the screenshots so i did not screenshot them again. You can choose form the ones in the screenshots.

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Question 35 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: A B Units sold 9,300 19,500 Selling price per unit $96 $77 Variable costs per unit 52 48 Fixed costs per unit 23 23 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 10,100 units of C next year at a price of $119; the variable costs per unit of C are $47. 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 new product, it expects next year's results to be the same as this year's. Determine whether Straus Company should introduce product next year. Why or why not? Company profit with Products A and B: A B Total $ Sales revenue Contribution margin Variable costs Fixed costs Net income (loss) Units sold 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 10,100 units of C next year at a price of $119; the variable costs per unit of C are $47. 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 new product, it expects next year's results to be the same as this year's. Determine whether Straus Company should introduce product C next year. Why or why not? Company profit with Products A and B: B Total Variable costs Contribution margin Fixed costs Net income (loss) Units sold Sales revenue Company profit with Products A and C: A Total Company profit with Products A and B: A B Total $ Add Less $ Company profit with Products A and C: Total $ v Company profit with Products A and B: A B Total Sales revenue Variable costs Contribution margin Net income (loss) Fixed costs Units sold Company profit with Products A and C: Total FULL SCREEN PRINTER VERSION

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