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Techno Corporation is currently manufacturing an item at variable costs of $4 per unit. Annual fixed costs of manufacturing this item are $140,000. The
Techno Corporation is currently manufacturing an item at variable costs of $4 per unit. Annual fixed costs of manufacturing this item are $140,000. The current selling price of the item is $10 per unit, and the annual sales volume is 35,000 units. a. Techno can substantially improve the item's quality by installing new equipment at additional annual fixed costs of $60,000. Variable costs per unit would increase by $2, but, as more of the better-quality product could be sold, the annual volume would increase to 50,000 units. Should Techno buy the new equipment and maintain the current price of the item? Why or why not? 7, because the profit from $ to $ . (Enter your responses as integers.)
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