Answer using Excel***

An electronics firm is currently manufacturing an item that has a variable cost of $.50 per unit and a selling price of $1.00 per unit. Fixed costs are $15,000. The current volume is 30,000 units. A. (5 points) The firm can substantially improve product quality by adding a new piece of equipment at an additional fixed cost of $5,000. The variable cost would increase to $.70, but volume should jump to 45,000 units due to a higher-quality product. Should the company buy new equipment? B. (5 points) After the decision is made for part a., the electronics firm is now considering the new equipment and increasing the selling price to $1.10 per unit. With a higher-quality product, the new volume is expected to be 40,000 units. Under these circumstances, should the company purchase the new equipment and increase the selling price