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were at fothove (1) hatprekt is II Elestom Company operatesa emailactory in which it manufactures two products. A and B. Production and sies result for
were at fothove (1) hatprekt is II Elestom Company operatesa emailactory in which it manufactures two products. A and B. Production and sies result for last year were anfollove For purposes of simplicity. the frm aliocates total ford costs over the total number of units of A and B produced and sold. The resarch departsent has developed a new product 1Q an a replacement for product B. Markat studies show that Blossiom Compry could sell 11320 units of C nedyear at a unit sellins prias of 560 . The unit variable cost of C is 539 . The introduction of proouct Cwill lead to a 109 s increme in demand for product A and discontinuation of product B. If the compary does not introduce the new product it opects neat year's redil to be the same as last year's (a) Caloivte the net proft before the introbuction of Product Net Proft 5 (b) 6. Your anwer ia incornet Calovate the net proft ir Blosiom Cempany introduces ProductC
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