An electronics manufacturing firm is currently manufacturing resistors that have a variable cost of $0.50 per unit and a selling price of $1.00 per unit. Fixed costs are $100,000. Current volume is 300,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $60,000. Variable cost would increase to $0.60, but volume should jump to 500,000 units due to the higher-quality product.

1. Should the firm buy the new equipment?
2. What is the minimum price the company would have to charge in order for the new equipment to be worth purchasing (assuming the higher or lower price doesnt affect the 500,000 unit volume)?