AudioCables, Incorporated, is currently manufacturing an adapter that has a variable cost of $$0\mathrm{.}60$ per unit and a selling price of $$1\mathrm{.}20$ per unit. Fixed costs are $$14,000.$ Current sales volume is $30,000$ units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $$6,000.$ Variable costs would increase to $$0\mathrm{.}75,$ but sales volume should jump to $45,000$ units due to a higher$-$quality product.

What is the current profit and proposed profit from the sales of AudioCables?

Note: Negative amounts should be indicated by a minus sign.

Should AudioCables buy the new equipment?

multiple choice

Yes

No

There is insufficient information provided to answer this question.