Illustrate what conditions purchase the new equipment

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Q. 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 margin of only $4.00 per unit. Should you purchase the new equipment? Under illustrate what conditions?

Reference no: EM1373962

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