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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.

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 what conditions? Breakeven analysis is needed.
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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...

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