Question: PLEASE ANSWER THE QUESTION IN DETAILS AND MAKE YOUR ANSWER UNIQUE (the variables are different, not same as those that are in chegg) 6. Audio

PLEASE ANSWER THE QUESTION IN DETAILS AND MAKE YOUR ANSWER UNIQUE

(the variables are different, not same as those that are in chegg)

6. Audio Cable is currently manufacturing an adaptor that has a variable cost of $0.6 per unit and selling price of $1 per unit. Fixed costs are $14000. Currently sales volume is 35000 units. The firm can improve the product quality by adding a new piece of equipment at an additional cost of $6000. Variable costs increase to $0.7 but sales volume should jump to 50000 units due to the higher quality. Should AutoCable buy the new equipment

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