Video Concepts, Inc. $($VCI$)$ manufactures a line of videocassette recorders $($VCRs$)$ that are distributed to large retailers. The line consists of three models of VCRs$.$ The following data are available regarding the models:

$\backslash$table$[[$VCR Selling Price,Variable Cost,$\backslash$table$[[$Demand$/$Year$],[($units$)]],],[$Mer Unit,per Unit,$2,000,],[$Model LX$1,$$$175,$$$100,1,000],[$Model LX$2,250,125,500]]$

VCI is considering the addition of a fourth model to its line of VCRs$.$ This odel would be sold to retailers for $$375.$ The variable cost of this unit is $225.$ The demand for the new Model LX$4$ is estimated to be $300$ units per ar$.$ Sixty percent of these unit sales of the new model is expected to come m other models already being manufactured by VCI $(10$ percent from Model $1,30$ percent from Model LX$2,$ and $60$ percent from Model LX$3).$ VCI will ur a fixed cost of $$20,000$ to add the new model to the line. Based on the ceding data, should VCI add the new Model LX$4$ to its line of VCRs$?$ Why?

$x$ Leonard, vice president of Marketing for Dysk Computer, Inc., must decide ether to introduce a midpriced version of the firm's DC$6900$ personal