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.