Business, 26.09.2019 19:00 darthshot4

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

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Company is considering introducing a new compact disc player model at a price of $ 105 per unit. san...

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