The Wildhorse Publications Textbook Company sells all of its books for $100 per book, and it...

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The Wildhorse Publications Textbook Company sells all of itsbooks for $100 per book, and it currently costs $50 in variablecosts to produce each text. The fixed costs, which includedepreciation and amortization for the firm, are currently $2million per year. Management is considering changing the firm’sproduction technology, which will increase the fixed costs for thefirm by 36 percent but decrease the variable costs per unit by 36percent. If management expects to sell 45,000 books next year,should they switch technologies? (Round answers to nearest wholedollar,e.g. 5,275.)
The current EBIT for the firm is $ .
If the firm changes technology, the firm’s new EBIT will be $.
The firm should select an option the new technologies.

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The Wildhorse Publications Textbook Company sells all of itsbooks for $100 per book, and it currently costs $50 in variablecosts to produce each text. The fixed costs, which includedepreciation and amortization for the firm, are currently $2million per year. Management is considering changing the firm’sproduction technology, which will increase the fixed costs for thefirm by 36 percent but decrease the variable costs per unit by 36percent. If management expects to sell 45,000 books next year,should they switch technologies? (Round answers to nearest wholedollar,e.g. 5,275.)The current EBIT for the firm is $ .If the firm changes technology, the firm’s new EBIT will be $.The firm should select an option the new technologies.