Can you please show the work? Thank you. Wildhorse...
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Can you please show the work? Thank you.
Wildhorse Company operates a small 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 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 Wildhorse Company could sell 15,600 units of C next year at a unit selling price of $80. The unit variable cost of C is $39. 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 product, it expects next year's result to be the same as last year's. Calculate the net profit before the introduction of Product C. Calculate the net profit if Wildhorse Company introduces Product C. NetProfit \$ Should Wildhorse Introduce product C
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