Business, 17.07.2019 07:00, smokeoutkitten
17 tharp company operates a small factory in which it manufactures two products: c and d. production and sales results for last year were as follows. c d units sold 9,200 19,700 selling price per unit $95 $77 variable cost per unit 52 41 fixed cost per unit 22 22 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 tharp company could sell 11,700 units of e next year at a price of $113; the variable cost per unit of e is $45. the introduction of product e will lead to a 11% 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.
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17 tharp company operates a small factory in which it manufactures two products: c and d. productio...
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