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Company A currently sells Product A1. If the company purchases a new piece of equipment, it can produce Product A2 instead of A1. The company
Company A currently sells Product A1. If the company purchases a new piece of equipment, it can produce Product A2 instead of A1. The company has prepared the following analysis for each option: Sales Price Variable Costs Fixed Costs Product Al $1.00 per unit $0.25 per unit $18,000 Product A2 $2.00 per unit $0.30 per unit $54.000 Assume that under either option, Company A will sell 50,000 units of product. What will be Company A's increase or decrease in profit for the year if it choose to sell Product A2 instead of Product A1? O $11,000 increase O $11,500 increase O $17,500 increase O $38,500 decrease
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