An electronics firm is currently manufacturing an item that, Ask an Expert

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An electronics firm is currently manufacturing an item that has a variable cost of $0.45 per unit and a selling price of $1.05 per unit. Fixed costs are$15,000 per month. Current volume is 35,000 units per month. The firm wants to improve the product quality by adding a new piece of equipment at an additional fixed cost of $5,600 a month. Variable cost would increase to $0.70 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

if the firm does not add new equipment, its profit will be?

if the firm does add new equipment, its profit will be?

Based on the given information, the decision should be to?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91764040

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