Plymouth Corp. sells units for $90 each. Variable costs are $33 per unit, and fixed costs are $208,000. If Plymouth leases a new machine, production will be more efficient, saving $10 per unit. If Plymouth plans to sell 13,000 units, at what lease cost will Plymouth be indifferent between leasing and not leasing the new machine?

Multiple Choice

• $72,000

• $9,000

• $36,000

• $130,000