Elmwood, Inc. currently sells 13,300 units of its product per year for $113 each. Variable coaste total $88 per unit. Elmwood's manager believes that if a new machine is leased dor $249,375 per year, modifications can be made to the product that will increase its retail value. These modifications will increase variable costs by $13.50 per unit, but Elmwood is hoppng to sell he modified units for $143 each.

a-1. Should Elmwood modify the units or sell them as is?

o Sell as is

o Sell with midifications

a-2. How much will the decision affect profit?

Amount: _________

b. What is the least Elmwood could charge for the modified units to make it worthwhile to modify them? (Round answer to 2 decimal places.)

Minimum Selling Price: _________

Elmwood, Inc currently sells 13,300 units of its product per year for $113 each. Variable costs total 588 per unit. Elmwood's manager believes that if a new machine is leased for $249,375 per year, modifications can be made to the product that will increase its retall value. These modifications will increase variable costs by $13.50 per unit, but Elmwood is hoping to sell the modified units for 5143 each 3-1. Should Elmwood modify the units or sell them as 15? Sell as is Sell with modifications a-2. How much will the decision affect profit Amount b. What is the least Elmwood could charge for the modified units to make it worthwhile to modify them? (Round your answer to 2 decimal places.) Minimum Selling Price