Uuring the past 15 montns, a new product nas been under development that allows users improved access to e-mall and video images. Johnson and Gomez code named the product the Wireless Wizard and has been quietly designing two models: Basic and Enhanced. Development costs have amounted to $187.500 and $268,500, respectively. The total market demand for each model is expected to be 44,000 units, and management anticipates being able to obtain the following market shares: Basic, 20 percent, Enhanced, 15 percent. Forecasted data follow. "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 Johnson and Gomez paying $34,900 for an in-depth market study. Sales salaries (excluding commission) will be $87,500 no matter which product is sold. The marketing and advertising costs indicated for each product are incurred only if that product is sold. Other fixed overhead is expected to be the same, regardless of which product is introduced. PR 14-46 (Algo) Part 3: Prepare a financial analysis and determine which of the two models should be introduced. 3-0. Prepare a financial analysis and determine which of the two models should be introduced. 3-b. The company would be advised to select the Enhanced model or Basic model. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Prepare a financial analysis and determine which of the two models should be introduced. Note: Round intermediate calculations to 2 decimal places