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12 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....

12 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?

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12 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...

Sign up to view the full answer

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