1.Based on the given information, the decision should be to add new equipment, since the profit with the new equipment is ( $)(enter your response to the nearest whole number and include a minus sign if

necessary).

An electronics firm is currently manufacturing an item that has a variable cost of $0.45 per unit and a selling price of $7.45 per unit. Fixed costs are $16,000. Current volume is 25,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $6,400. Variable cost would increase to $0.70, but volume should jump to 60,000 units due to a higher-quality product