An electronics firm is currently manufacturing an item that has a variable cost of $0.45 per unit and a selling price of $7.45 per unit. Fixed costs are $14,000. Current volume is 30,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $6,400. Variable cost would increase to $0.65 and the selling price would be revised to $7.60 with the expectation that the volume would be 55,000 units as a result of a higher-quality product.

If the firm does not add new equipment, its profit will be =___ dollars (round your response to the nearest whole number and include a minus sign if the profit is negative).

If the firm does add new equipment, its profit will be = ___dollars (round your response to the nearest whole number and include a minus sign if the profit is negative).

Based on the given information, the decision should be to

Stay as is or Add New Equipment