Question
Plymouth Corp. sells units for $102 each. Variable costs are $39 per unit, and fixed costs are $209,000. If Plymouth leases a new machine, production
Plymouth Corp. sells units for $102 each. Variable costs are $39 per unit, and fixed costs are $209,000. If Plymouth leases a new machine, production will be more efficient, saving $5 per unit. If Plymouth plans to sell 20,000 units, at what lease cost will Plymouth be indifferent between leasing and not leasing the new machine?
Multiple Choice
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$100,000
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$10,200
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$40,800
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$81,600
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Security And Loss Prevention An Introduction
Authors: Philip Purpura CPP Florence Darlington Technical College
7th Edition
0128117958, 9780128117958
