Question: 2. An electronic manufacturing a product that has a variable cost of $0.75 per unit and a selling price of $1.25 per unit. Fixed costs

2. An electronic manufacturing a product that has a variable cost of $0.75 per unit and a selling price of $1.25 per unit. Fixed costs are $12,000. Current volume is 50,000 units. The product can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $5,000. Variable cost would increase to $1.00, but their volume should increase to 70,000 units due to the higher quality product. Should the company buy the new equipment? If the manger decided to improve the quality alone, what would be the break even quantity

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