- Your company’s top product has traditionally earned about $1476 in profits for each hour of production. Now a new version of the product has been proposed. The data from the test-run for manufacturing the new version is shown below.
| Raw materials | Packaging | Overhead (facility, equipment, salaries, shipping, etc.) | Production capacity | Sells for | |
| Current Version | $41 per product | $16 per product | $15 per product | 12 per hour | $195 each |
| New Version | $32 per product | $11 per product | $15 per product | 18 per hour | $150 each |
Based on this information, does it make sense to switch to the new version? Why or why not?
