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Use below information for Questions 9 to 10: en Inc. operates a small factory in which it manufactures two products: C and D. Production and

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Use below information for Questions 9 to 10: en Inc. operates a small factory in which it manufactures two products: C and D. Production and sales results for last year were as follows: Item C D 95 Units sold Selling price per unit Unit Contribution Margin Fixed cost per unit 9,000 20,000 75 45 34 24 24 For purposes of simplicity, the firm averages total fixed costs over the total number of units produced. The research department has developed a new product (E) as a replacement for product D. Market studies show that the firm could sell 11,500 units of E next year. Unit variable cost of producing E is estimated to be TL41 at a contribution margin ratio of 65%. Bimen Bey, the CMO of the en Inc., forecasts that introduction of E will lead to a 14% decrease 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. Q-9) Calculate net income for the next year if the company does not introduce product E. Q-10) Calculate net income for the next year if the company introduces product E

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