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Should sheffield limited introduce sheffield soil test kit

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The Inventory Manager is considering introducing a new product to Sheffield Limited - the Sheffield soil test kit. The kit would sell for $400 per unit, have variable manufacturing costs of $120 per unit, and variable selling costs of $40 per unit. Market analysis suggests Sheffield Limited could sell 200 units per month. The company's monthly fixed expenses are $36,000. The tax rate is 30% and Sheffield Limited have a targeted before-tax profit for the product of $16,000 per month.

Porblem 1: Should Sheffield Limited introduce the 'Sheffield Soil Test Kit'

Reference no: EM132791782

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