Uddin Company sells a single product at a price of $57 per unit. Variable costs per unit are $35 and total fixed costs are $719,400. Uddin is considering the purchase of a new piece of equipment that would increase the fixed costs to $1,023,700, but decrease the variable costs per unit to $28.

If Uddin Company expects to sell 40,000 units next year, should they purchase this new equipment?

Answer rating: 100% (QA)

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