Question
An electronics firm is currently manufacturing an item that has a variable cost of $ 0.45 per unit and a selling price of $ 1.05
An electronics firm is currently manufacturing an item that has a variable cost of $ 0.45 per unit and a selling price of $ 1.05 per unit. Fixed costs are $ 14 comma 000. Current volume is 35 000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $ 6000. Variable cost would increase to $ 0.70 and the selling price would be revised to $ 1.25 with the expectation that the volume would be 55000 units as a result of a? higher-quality product.
If the firm does not add new? equipment, its profit will be? = nothing 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? = nothing 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
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