Question: please solve ASAP and show step by step solution! Q4. Manufacturing (HW). A manufacturer is currently producing an item which has a variable cost of

please solve ASAP and show step by step solution!

Q4. Manufacturing (HW). A manufacturer is currently producing an item which has a variable cost of $0.75 per unit and a selling price of $2.00 per unit. Fixed costs are $20,000. Current yolume is 40,000 units. The firm can produce what it believes is a better product by adding a new piece of equipment to the process line. This equipment represents an inerease of $5,000 in fixed cost. The variable cost increase would be $0.50 per unit. Volume for the new and improved product should rise to 50,000 units. (a) What is total profit now? (b) What will be the profit with the new machine? (c) Should the company invest in the new equipment

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