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3 a . Calculate the unit sales per month at which Frieden management will be indifferent between doing the major upgrade to the manufacturing equipment
a Calculate the unit sales per month at which Frieden management will be indifferent between doing the major upgrade to the manufacturing equipment and not doing the upgrade. b Based on the above analysis, should Friedan proceed with the major upgrade? Yes or No c Why or why not? In this case, the indifference point would be at the current level of sales at which the upgrade have an impact on the operating income. So Frieden's proceed to upgrade. a Refer to the orginal data. Instead of doing the major upgrade to the equipent, management is considering introducing a new advertising campaign that will increase fixed expenses by $ per month. Management believes the new advertisements will increase monthly unit sales by In this case, what would be impact on operating income.
a Calculate the unit sales per month at which Frieden management will be indifferent between doing the major upgrade to the manufacturing equipment and not doing the upgrade.
b Based on the above analysis, should Friedan proceed with the major upgrade? Yes or No
c Why or why not?
In this case, the indifference point would be at the current level of sales at which the upgrade have an impact on the operating income. So Frieden's proceed to upgrade.
a Refer to the orginal data. Instead of doing the major upgrade to the equipent, management is considering introducing a new advertising campaign that will increase fixed expenses by $ per month. Management believes the new advertisements will increase monthly unit sales by In this case, what would be impact on operating income.
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