Mop and Broom Manufacturing has decided to produce a new type of mop.

The mop can be made with the current equipment in place. Estimates of fixed costs per year are $40,000, and the variable cost for each mop produced is $19.

However, the company is considering the purchase of new equipment that would produce the mop more efficiently.

The fixed cost would be raised to $51,000 per year, but the variable cost would be reduced to $16 per unit.

The company still plans to sell the mops at $24 per unit. Should Mop and Broom produce the mop with the new or current equipment? Specify the volume of demand for which you would choose each process.