audiocables -- make or buy

Project Description:

audio cables, inc. is currently manufacturing an adapter that has a variable cost of $0.50 and a selling price of $1.00 per unit. fixed costs are $14000. current sales volume is 30,000. the form can substantially improve the product quality by adding a new piece of equipment at an additional cost of $6000. variable costs would increase to $0.60, but sales volume should jump to 50,000 units due to a higher-quality product. should audiocables buy the new equipment?
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Project Stats:

Price Type: Negotiable

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Total Proposals: 6
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