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An electronics firm is currently manufacturing an item that has a variable cost of $0.50 per unit and a selling price of $1.10 per unit.
An electronics firm is currently manufacturing an item that has a variable cost of $0.50 per unit and a selling price of $1.10 per unit. Fixed costs are $16,000. 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 $5,600. Variable cost would increase to $0.60, but volume should jump to 50,000 units due to a higher-quality product. Based on the given information, the decision should be to , since the profit with the existing equipment is $ (enter your response to the nearest whole number and include a minus sign if necessary)
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