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Attic Inc has the following information: Units produced and sold: 5,000 Selling price per unit: $40 Direct expenses per unit: $25 Fixed expenses per month:
Attic Inc has the following information:
Units produced and sold: 5,000
Selling price per unit: $40
Direct expenses per unit: $25
Fixed expenses per month: $65,000
Attic Inc has the opportunity to rent a machine that would reduce variable expense by $5 per unit. It would cost $15,000 per month to rent.
Should Attic Inc rent the machine? Why or Why Not?
a) Yes. They would spend $15,000 per month more.
b) Yes. They would save $10,000 per month.
c) No. They would spend $15,000 per month more.
d) No. They would save $10,000 per month.
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