Question: A manager has determined that a potential new product can be sold at a price of $10.00 each. The cost to produce the product is

A manager has determined that a potential new product can be sold at a price of $10.00 each. The cost to produce the product is $5.00, but the equipment necessary for production must be leased for $25,000 per year. What is the break-even point?

a). 2500 units

b). 5000 units

c). 7500 units

d). 10000 units

e). 25000 units

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