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melamori03 [73]
3 years ago
14

Company is considering introducing a new compact disc player model at a price of $ 105 per unit. Santos ​'s controller has compi

led the following incremental cost information based on an estimate of 120 comma 000 units of sales annually for the new​ product: Direct materials cost $3,600,000 Direct labor cost $2,400,000 Variable manufacturing overhead $1,200,000 Sales commission 10% of sales Fixed cost $2,000,000 The sales manager expects the introduction of the new model to result in a reduction in sales of the existing model from 300 comma 000 to 240 comma 000 units. The contribution margin for the existing model is $ 20 per unit. Requirements ​(a) Determine the total impact on Santos ​'s profit from the introduction of the new model. ​(b) Should Santos introduce the new​ model? Explain.
Business
1 answer:
FinnZ [79.3K]3 years ago
3 0

Answer:

flkdsahogherojgklaexijgu

Explanation:

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