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Indigo Corporation currently leases a processing machine. They believe they can reduce their total fixed costs from $1,200,000 to $1,000,000 by cancelling their lease, and

Indigo Corporation currently leases a processing machine. They believe they can reduce their total fixed costs from $1,200,000 to $1,000,000 by cancelling their lease, and hiring independent contractors to handle processing at a cost of $25 per unit processed. They dont believe the change will affect customer satisfaction at all. A Cost-Volume-Profit Analysis would suggest cancelling the lease is the correct decision if:

They need more than 48,000 units

They need fewer than 48,000 units

They need more than 40,000 units

They need fewer than 40,000 units

They need more than 8,000 units

They need fewer than 8,000 units

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