Data concerning Clyde Corporation's single product appear below:

Fixed expenses are $$466,000$ per month. The company is currently selling $6,000$ units per month.

Clyde currently has a relevant range of production in units between zero and $15,000$ units.

Required:

The vice president of production has introduced an idea to bring in robots to add additional production capacity. The new robots

will increased annual fixed cost by $$120,000,$ but they will be able to increase production levels from $6,000$ to $30,000$ units. The

marketing department has determined that it will need to add $$80,000$ worth of new advertising costs to increase the demand

for the products to $30,000.$ However, the new robots will also decrease per unit variable cost from $$26\mathrm{.}00$ per unit to $$20\mathrm{.}00$ per

unit. Total fixed cost, besides the increase in costs due to the robots, is expected to increase by $$400,000$ to increase the

production in units relevant range from zero to $15,000$ units $/$ zero to $30,000$ units.

Should Clyde accept the vice president of production recommendation?