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Plymouth Corp. sells units for $108 each. Variable costs are $33 per unit, and fixed costs are $181,000. If Plymouth leases a new machine, production
Plymouth Corp. sells units for $108 each. Variable costs are $33 per unit, and fixed costs are $181,000. If Plymouth leases a new machine, production will be more efficient, saving $8 per unit. If Plymouth plans to sell 18,000 units, at what lease cost will Plymouth be indifferent between leasing and not leasing the new machine? Multiple Choice $10,800 $43,200 $144,000 $86,400
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