Please help me Crane Company operates a small factory in which it manufactures two products: A and B. Production and sales result for last yearwere as follow:Units soldSelling price per unitUnit variable costUnit fixed costA8,320653515B16,640523015For purposes of simplicity, the firm allocates total fixed costs over the total number of units of A and B produced and sold.The research department has developed a new product (C) as a replacement for product B. Market studies show that Crane Companycould sell 11,640 units of C next year at a unit selling price of $80. The unit variable cost of C is $39. The introduction of product C willlead to a 10% increase in demand for product A and discontinuation of product B. If the company does not introduce the new product,it expects next year's result to be the same as last year's. (a)Your answer is correct.Calculate the net profit before the introduction of Product C.(b)Net ProfitCAeTextbook and MediaCalculate the net profit if Crane Company introduces Product C.Net Profit $241,280CA

Calculation of Fixed Costs : Fixed Costs = No. of units of Product A and B * Fixed cost per unit=…

Crane Company operates a small factory in which it manufactures two products: A and B. Production and sales result for last year were as follow: Units sold Selling price per unit Unit variable cost Unit fixed cost A 8,320 65 35 15 B 16,640 52 30 15 For purposes of simplicity, the firm allocates total fixed costs over the total number of units of A and B produced and sold. The research department has developed a new product (C) as a replacement for product B. Market studies show that Crane Compar could sell 11,640 units of C next year at a unit selling price of $80. The unit variable cost of C is $39. The introduction of product Cw lead to a 10% increase in demand for product A and discontinuation of product B. If the company does not introduce the new produ it expects next year's result to be the same as last year's.