Your company makes a product that has traditionally earned about $570 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||$21 per product||$8 per product||$24 per product||4 per hour||$195 each|
|New Version||$32 per product||$11 per product||$24 per product||6 per hour||$150 each|
Based on this information, does it make sense to switch to the new version? Why or why not?