Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. tharp company operated a small factory in which it

Tharp Company operated a small factory in which it manufactures two products: C and D...

70.2K

Verified Solution

Question

Accounting

Tharp Company operated a small factory in which it manufactures two products: C and D Production and sale results for last year were as follows. C D Unit Sold 9000 20,000 Selling Price $95 $75 VC per unit $0 $40 FC per unit 24 24 For purpose and simplicity, the firm averages total fixed costs over the total number of units of C and D produced and sold. The research department has developed an new product E as a replacement for product D. Market studies show that Tharp Company could sell 10,000 unit of E next year at price of $115. The variable cost per unit of E is $45. The introduction of product E will lead to a 10% increase of demand of product C and a discontinuation of product D. If the company does not introduce the new product, it expects next year's result to be the same as last year's. Should Tharp Company should introduce Product E next year? Explain why or why not. Show your calculations clearly

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Looking at moral reasoning in America, Carol Gilligan contends that the emphasis on autonomy and independence...

Psychology
Q

Can moral rules of cooperation emerge spontaneously from the interactions of rational egoists?

Psychology
Q

The term gating refers to what A The transition state in an antiporter B The...

Biology
Q

Potential energy and kinetic energy of a two particle system under imaginary force field are...

Physics
Q

A medical researcher measures the increase in heart rate of patients who are taking a...

Statistics
Q

Let S p x E P p 1 p 2 a Show that S is...

Algebra
Q

Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance....

Accounting
Q

b. Sybil, age 40, is single and supports her dependent parents who live with her,...

Accounting
Q

The Garden Company began the accounting period with a $42,000 credit balance in its Accounts...

Accounting
Q

Subject : Budgeting in business Please fill in all the blanks ...

Accounting
Q

ABC Corp's Net Operating Profit After Taxes (NOPAT) is $90,000 for the year-ended 2020. Determine...

Finance
Q

Answer ALL of these 10 questions and I will give you $20. You must be...

Finance