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An electronics firm is currently manufacturing an item that has a variable cost of $0.55 per unit and a selling price of $7.55 per unit.
An electronics firm is currently manufacturing an item that has a variable cost of $0.55 per unit and a selling price of $7.55 per unit. Fixed costs are $16000 Current volume is 35,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $5,600 Variable cost would increase to $060 and the selling price would be revised to $7.75 with the expectation that the volume would be 45,000 units as a result of a higher-quality product If the firm does not add new equipment, its profit will be = number and include a minus sign if the profit is negative) dollars (round your response to the nearest whole If the firm does add new equipment, its profit will be = dollars (round your response to the nearest whole number and include a minus sign if the profit is negative). Based on the given information, the decision should be to stay as is add new equipment
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