Question: how do i work this problem out please do it in simple terms Riverside, Inc., wants to update the finish on its window frame. It
Riverside, Inc., wants to update the finish on its window frame. It has two choices: (a) buy new equipment at a cost of 20000; (b) make major modifications at a cost of $13,000. If the firm chooses to buy new equipment, materials and labor will be $3 per frame. If it chooses to make modifications, materials and labor will be $5 per frame. If the company thinks it can sell 3600 units at a selling price of $60, which of the following option is better? (b) make major modifications None of these O It does not matter which option is chosen. Correct An : swer: (a) purchase new equipment (a) purchase new equipment Sell 700 units after (a) purchasing new equipment and sell 2900 units after (b) making major modifications
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