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Problem 7-14 (Algo) AudioCables, Inc_, is currently manufacturing an adapter that has a variable cost of $0.60 per unit and a selling price of $1.20

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Problem 7-14 (Algo) AudioCables, Inc_, is currently manufacturing an adapter that has a variable cost of $0.60 per unit and a selling price of $1.20 per unit. Fixed costs are $14,000. Current sales volume is 40,000 units. The rm can substantially improve the product quality by adding a new piece of equipment at an additional xed cost of $6,000. Variable costs would increase to $015, but sales volume should jump to 75,000 units due to a higherquality.r product a. What is the current prot and proposed prot of the sales of AudioCables? (Negative amounts should be indicated by a minus sign.) Current prot - Proposed prot - b. Should AudioCables buy the new equipment? 0 No 0 Yes 0 There is insufficient information provided to answer this

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