Assignments 3Instructions1. This is an individual assignment.2. Write the memo using an accepted format.Fluid Company operates a small factory in which it manufactures two products: Fruju and Aqua.Production and sales results for last years were as follows: Units soldSelling price per unitVariable cost per unitFixed cost per unit FrujuAqua9,80021,000$95$75$50$40$24$24 For purposes of simplicity, the firm averages total fixed costs over the total number of units of Fruju andAqua produced and sold.The research department has developed a new product, Mixed Fruit as a replacement for Aqua. Marketstudies show that Fluid Company could sell 10,000 units of Mixed Fruit next year at a price of $115.The variable cost per unit of Mixed Fruit is $45.The introduction of product Mixed Fruit will lead to a 10% increase in demand for product Fruju anddiscontinuation of product Aqua.If the company does not introduce the new product, it expects next yearâs results to be the same as lastyearâs.Required:Write a memo to the management of Fluid Company discussing whether the Fluid Company shouldintroduce Product Mixed Fruit next year. Explain why or why not with appropriate computations.
https://essayshine.com/wp-content/uploads/2021/05/essay-shine.png 0 0 steve https://essayshine.com/wp-content/uploads/2021/05/essay-shine.png steve2021-03-27 07:16:102021-03-27 07:16:10acc522-Fluid Company operates a small factory in which