Yazelik vacuum cleaner production and trade joint stock company, which has observed that the competition has become more intense lately, is looking for new opportunities to increase its market share The production and sales of Yazelik for the first four month production period of 2017 are presented below Average monthly production 6 500 Units Average monthly sales 6,000 Units Monthly production power 10,000 Units Sale price 55 TL Production Costs D Raw Material 10 TL Unit D Labor 5TL Unit Variable Customs duty 20TL Unit Fixed customs tax 17,000 TL month General administrative and selling expenses Fixed (monthly) 10 000 TL month Variable 5tl Unit As a result of his market research, the sales manager says that he believes it would be beneficial to introduce a cheaper priced vacuum called public type According to the estimates, this vacuum cleaner will not cause any change in fixed production and fixed general management and sales costs However, the variable selling expense for this product will be 7TL unit Among the variable production costs, only the raw material will decrease by 1 50 TL B, and other variable costs will remain the same If the sales price of this product is 46 TL, it has been calculated that 7,000 units can be sold per month (total monthly capacity is not more than 10,000 units) Requested Evaluate the proposal, assuming that all the predictions made are correct Please explain your decision about whether or not to put the new product on the production line, with its justification

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Yazelik vacuum cleaner production and trade joint stock company, which has observed that the competition has become more intense lately, is looking for new opportunities to increase its market share  The production and sales of Yazelik for the first four month production period of 2017 are presented below  Average monthly production  6 500 Units Average monthly sales  6,000 Units Monthly production power  10,000 Units Sale price  55 TL Production Costs D  Raw Material 10 TL Unit D  Labor 5TL Unit Variable Customs duty 20TL Unit Fixed customs tax  17,000 TL month General administrative and selling expenses Fixed (monthly) 10 000 TL month Variable 5tl Unit As a result of his market research, the sales manager says that he believes it would be beneficial to introduce a cheaper priced vacuum called  public type   According to the estimates, this vacuum cleaner will not cause any change in fixed production and fixed general management and sales costs  However, the variable selling expense for this product will be 7TL unit  Among the variable production costs, only the raw material will decrease by 1 50 TL B, and other variable costs will remain the same  If the sales price of this product is 46 TL, it has been calculated that 7,000 units can be sold per month (total monthly capacity is not more than 10,000 units)  Requested  Evaluate the proposal, assuming that all the predictions made are correct  Please explain your decision about whether or not to put the new product on the production line, with its justification

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