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Business, 14.11.2019 01:31 myla18jabbar

An electronics firm is currently manufacturing an item that has a variable cost of $ 0.45 per unit and a selling price of $ 7.45 per unit. fixed costs are $ 15 comma 000. current volume is 30 comma 000 units. the firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $ 5 comma 600. variable cost would increase to $ 0.60 and the selling price would be revised to $ 7.55 with the expectation that the volume would be 50 comma 000 units as a result of a higher-quality product.

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An electronics firm is currently manufacturing an item that has a variable cost of $ 0.45 per unit a...
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