Forde Inc. is considering the production of a new product. There are 3 options to consider in the production process: - Utilizing the existing machine with a variable cost of $52 per unit; fixed cost $14,000 - Upgrading the present machine with a variable cost of $40 per unit; fixed cost $18,750 - Adding a new machine with a variable cost per unit cost of $31; fixed cost $28,000 The organization is worried however, about the impact of competition. If competition occurs, they expect manufacture 3,500,4,550, and 7,800 units respectively. Without competition, they expect to manufacture: 5,700,6,550, and 8,925 units respectively. At the moment their best estimate is that there is a 58% chance of competition. They will make their manufacturing decision based on the overall cost for each alternative. Based on evaluating cost, determine the following: a. What is the EMV if they utilize the current machine? b. What is the EMV if they consider upgrading? c. What is the EMV if they install a new machine? d. Which decision should Forde Inc. make? Forde Inc. is considering the production of a new product. There are 3 options to consider in the production process: - Utilizing the existing machine with a variable cost of $52 per unit; fixed cost $14,000 - Upgrading the present machine with a variable cost of $40 per unit; fixed cost $18,750 - Adding a new machine with a variable cost per unit cost of $31; fixed cost $28,000 The organization is worried however, about the impact of competition. If competition occurs, they expect manufacture 3,500,4,550, and 7,800 units respectively. Without competition, they expect to manufacture: 5,700,6,550, and 8,925 units respectively. At the moment their best estimate is that there is a 58% chance of competition. They will make their manufacturing decision based on the overall cost for each alternative. Based on evaluating cost, determine the following: a. What is the EMV if they utilize the current machine? b. What is the EMV if they consider upgrading? c. What is the EMV if they install a new machine? d. Which decision should Forde Inc. make