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Management Studies

Suppose which you are offered a new piece of equipment for $10,000. The equipment will produce 10,000 units per year with the margin of $6.00 per unit. Demand for product being produced has been 2,000 units per year. Your current equipment is completely depreciated and can manufacture the 2,000 units per year at but at a margin of only $4.00 per unit. Should you buy the new equipment? Under what situations?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M913844

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