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Plymouth Corp. sells units for $80 each. Variable costs are $30 per unit, and fixed costs are $227,000. If Plymouth leases a new machine,
Plymouth Corp. sells units for $80 each. Variable costs are $30 per unit, and fixed costs are $227,000. If Plymouth leases a new machine, fixed costs will increase by $80,000 a year, but production will be more efficient, saving $5 per unit. At what level of production will Plymouth be indifferent between leasing and not leasing the new machine? Multiple Choice 5,000 10,000 10,400 16,000
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