- 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?