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B If the firm does add new equipment, its profit will be = dollars (round your response to the nearest whole number and include a
B 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)
An eloctronics firm is oumenty manufacturing an iteen that has a variable cost of 50.50 per unit and a soling prioe of 51.00 per unit Fued costs are 514,000 . Cument volume is 35 ,000 units. The firm can substantiely improve the product quality by adding a new piece of equipmont at an sedifonal Fxed cost of $5.600. Varabie cost would inarease is $0.60 and the selling price would be revised to $1.20 with the expectation that the volume would be 45,000 units as a reault of a highos-qualty preduct. It the fem does not add new aquipment, its profit wil be = balins fround your response fo the nearest whole number and include a minus sign if the profi is negative) Based on the given information, the decision should be to add new equipment.
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