Assume that you are offered a new piece of equipment

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Assume that you are offered a new piece of equipment for $10,000.The equipment will produce 10,000 units per year with a margin of $6.00 per unit. Demand for the product being produced has been 2,000 units per year. Your current equipment is fully depreciated and can produce the 2,000 units per year at a marging of $4.00 per unit. Should you purchase the new equipment? Under what conditions? Show work

Reference no: EM1391749

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