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Wildhorse Company operates a small factory in which it manufactures two products: C and D. Production and sales results for last year were as follows. Unit selling price Unit variable costs Net profit with products C & D Net profit with products C & E D eTextbook and Media 20,000 $78 For purposes of 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 a new product (E) as a replacement for product D. Market studies show that Wildhorse Company could sell 11,200 units of E next year at a price of $113; unit variable costs of E are $40. The introduction of product E will lead to a 12% increase in demand for product C and discontinuation of product D. If the company does not introduce the new product, it expects next year's results to be the same as last year's. Compute company profit with products C&D and with products C & E. $ 42 $ 21 Should Wildhorse Company introduce product E next year?

Whahorse Compary operates a smalf factory in whichit manufactures two products: C and D. Production and sales results for last year were as follows. For purposes of simplicity, the furm averages total fosed costs over the total number of units of C and D produced and sold. The revearch department has developed a new product (1) us areplacement for product D Market studies show that Wilchorse Compary could sell 11,200 units of E next year at a perce of $113; unit variable costs of E are $40. The introduction of product f will lead to a 12 increase in demand for product C and divontinuation of product D. If the compary does not introduce the new product it expects nect year'sresults to be the same as last year's. Compute company profit with products C E E B and wh th prochicts C,E. E. Net profit witiproducts C&. Netprafit whthiproductsc SE Should Wibhorse Company introduce product Enect year

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