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Information P Flag question An electronics firm is currently manufacturing an item that has a variable cost of $0.55 per unit and a selling price
Information P Flag question An electronics firm is currently manufacturing an item that has a variable cost of $0.55 per unit and a selling price of $1.15 per unit. Fixed costs are $14.000. Current volume is 25.000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $6.000. Variable cost would increase to $0.65 and the selling price would be revised to $1.25 with the expectation that the volume would be 55.000 units as a result of a higher-quality product. Question 42 Not yet answered Marked out of 2.00 p Flag question if the firm does not add new equipment, what will be its profit in dollars (round your response to the nearest whole number and include a minus sign if the profit is negative). Answer: Question 43 Not yet answered Marked out of 2.00 p Flag question If the firm adds new equipment what will be its profit in dollars (round your response to the nearest whole number and include a minus sign if the profit is negative). Answer: Question 44 Not yet answered Marked out of 2.00 P Fla Based on the given information above, the decision should be to A. stay as is B. add new equipment
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