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

• $100,000

• $10,200

• $40,800

• $81,600