$5.$Jack$$s Grocery, a Super Centre which Purchases Shopping Carts from Real Deal Manufacturing Company has a $$store brand$$ item that has a variable cost of $$0\mathrm{.}75$ per unit and a selling price of $$1\mathrm{.}25$ per unit. Fixed costs are $$12,000.$ Current volume is $50,000$ units.

The Grocery 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\mathrm{.}00,$ but their volume should increase to $70,000$ units due to the higher quality product.

Based on this state of affairs, use suitable calculations to make your decision, whether Jack$$s Grocery should buy the new equipment?