Question: Mop and Broom Manufacturing, from Problem 12, has decided to produce a new type of mop. The mop can be made with the current equipment

Mop and Broom Manufacturing, from Problem 12, has decided to produce a new type of mop. The mop can be made with the current equipment in place. However, the company is considering the purchase of new equipment that would produce the mop more efficiently. The fixed cost would be raised to $50,000 per year, but the variable cost would be reduced to $15 per unit. The company still plans to sell the mops at $25 per unit. Should Mop and Broom produce the mop with the new or current equipment described in Problem 12? Specify the volume of demand for which you would choose each process.

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