Latest Motor Electronics (LME) is evaluating a proposal for anew product that is

Latest Motor Electronics (LME) is evaluating a proposal for anew product that is an intelligent version of a present product.Both the intelligent and existing product would beproduced and sold. If the Intelligent product is offeredit is expected that its acceptance will result in decreasedsales for the existing product. The forecasted salesand cost data are shown below where COGS is a percentage ofrevenues.