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Wildhorse Company operates a smali factory in which it manufactures two products. A and B. Production and sales result for last year were as follow:

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Wildhorse Company operates a smali factory in which it manufactures two products. A and B. Production and sales result for last year were as follow: For purposes of simplicity, the firm allocates total food costs over the total number of units of A and B produced and sold. The researchdepartment has developed a new product (C) as a replacement for product B. Market studles show that Wildhorse Company could sell 14,520 units of C next year at a unit selling price of $80. The unit variable cost of C is $39. The introduction of product Cwill 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 result to be the same as last year's. Calculate the net profit before theintroduction of Product C. Net Profit Cakulate the ret proftit Wildhorse Compary introduces Product C. Net probit s Stroud Wiaharse introduce product C

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