Business, 23.05.2020 16:59, Llamacornbabe

An electronics firm is currently manufacturing an item that has a variable cost of $ 0.50 per unit and a selling price of $ 1.00 per unit. Fixed costs are $ 14,000. The current volume is 30 comma 000 units. The firm can substantially improve product quality by adding a new piece of equipment at an additional fixed cost of $ 6,000. The variable cost would increase to $ 0.60, but volume should jump to 50,000 units due to a higher-quality product.
Based on the given information, the decision should be to:
a. For Smithson Cutting, the break-even point in units?
b. For Smithson Cutting, the break-even point in dollars =?

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An electronics firm is currently manufacturing an item that has a variable cost of $ 0.50 per unit a...