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6-36 An RV manufacturer estimates that annual profits A will increase if a mobile model is built and taken to trade shows to market their
6-36 An RV manufacturer estimates that annual profits A will increase if a mobile model is built and taken to trade shows to market their product line. A finance and engineering team has looked at the issue and has developed two options: 1. A large model can be developed at a cost of $70,000, and it should increase annual profits by $30,000 per year. 2. A small model can be developed for $55,000, but it will only increase annual profits by $12,000 per year
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