Plymouth Corp. sells units for $88 each. Variable costs are $33 per unit, and fixed costs are
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Plymouth Corp. sells units for $88 each. Variable costs are $33 per unit, and fixed costs are $225,000. If Plymouth leases a new machine, production will be more efficient, saving $6 per unit. If Plymouth plans to sell 12,000 units, at what lease cost will Plymouth be indifferent between leasing and not leasing the new machine?
$60,000
$80,000
$40,000
$10,000
Related Book For
Managerial Accounting
ISBN: b010ikdqzm
10th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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