1 Problem 30 Problem 30 p. 18 - Setup and complete the problem using the input data provide in the problem description. Answer the questions. (a) How many units should be sold to breakeven for each proposal? 3 Known parameters: Proposal A Proposal B 4 Selling price per unit 5 Fixed cost 6 Variable cost per unit 8 Input Data 9 Number of units, N (b) of the expected volume is 8,300 units, which alternative should be chosen? Why? 11 Results 12 Total revenue 13 Fixed cost 14 Total variable cost 15 Total cost 16 Profit 17 BEP 18 BEPS (0) " U 13 W UICUR ande 20 An electronics firm is currently manufacturing an item that has a variable cost of $0.60 per unit and selling price of $1.10 per unit. Fixed costs are $15,500. Current volume is 32,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $8,000. Variable cost would increase to $0.70, but volume is expected to jump to 50,000 units due to the higher quality of the product. (a) Should the company buy the new equipment? (b) Compute the profit with the current equipment and the expected profit with the new equipment. mod qui 1 m