Windsor Company operates a small factory in which it manufactures two products: A and B. Production and sales results for this year were as follows: A B Units sold 8,600 19,500 Selling price per unit $98 $78 Variable costs per unit 53 48 Fixed costs per unit 22 22 For purposes of simplicity, the firm averages total fixed costs over the total number of units of A and B produced and sold. The research department has developed a new product (C) as a replacement for product B. Market studies show that Windsor Company could sell 10,600 units of C next year at a price of $122; the variable costs per unit of Care $47. The introduction of product C will lead to a 10% increase in demand for product A and discontinuation of product B. If the company does not introduce the new prod it expects next 's results to be the sam this year's. Determine whether Windsor Company should introduce product C next year. Why or why not? Company profit with Products A and B: A B Total Sales revenue 842,800 1,521,000 Variable costs $ 455,800 $ 936,000 $ 1,391 Less 189,200 429,000 618 Net income (loss) V $ 197,800 $ 156,000 353 Add Fixed costs $ Company profit with Products A and C: A Total $ $ $