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Alexis Company currently produces and sells 1 0 , 0 0 0 units of calculator per year that has a variable cost of $ 5

Alexis Company currently produces and sells 10,000 units of calculator per year that has a variable cost of $5 and a fixed cost of $250,000. The company currently earns a $100,000 annual profit. Assume that Alexis has the opportunity to invest in a new machine that will enable the company to reduce variable costs to $3 per unit. The investment would cause fixed costs to increase by $25,000.
Should Alexis invest in the new technology?

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