Reference no: EM132224070

For the following problems, you’ll need to get the values for certain questions based on your birthdate. Make sure you show all your work for every problem. To begin with, enter your birthdate using the MM/DD/YYYY format. Is 10/27/1994 Old School Equipment Inc. manufactures DVD players that are distributed to large retailers. They have three models and here are the data available for each one: Model Selling price per unit Variable cost per unit Demand/Year (units) FGB1 156 98 2186 FGB2 298 101 1974 FGB3 376 123 548 They are considering launching a new model (FGB4), which would sell at $436 per unit and have variable costs of $167 per unit. The predicted demand is for the new model is [your year]. It is expected that 30% of the unit sales of the new model will come from the other models already being manufactured and sold by the firm. In particular, 25% is expected to come from FGB1, 35% from FGB2, and 40% from FGB3. The fixed costs incurred for the new model would be [your month multiplied by 10,000]. Based on the data above, should Old School Equipment Inc. add the FGB4 model to their lineup? Your response should indicate a clear Yes or No, and provide an explanation in terms of changes to the firm's total revenue and margin.