Electronics firm is currently manufacturing an item

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Reference no: EM131479161

An electronics firm is currently manufacturing an item that has a variable cost of $0.50 per unit and a selling price of $1.10 per unit. Fixed costs are $16,000. Current volume is 30,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $5, 600. Variable cost would increase to $0.60 and the selling price would be revised to $1.20 with the expectation that the volume would be 55,000 units as a result of a higher-quality product.

If the firm does not add new equipment, its profit will be = dollars (round your response to the nearest whole number and include a minus sign if the profit is negative).

Reference no: EM131479161

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