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Question 2 (5 points) A manager has determined that a potential new product can be sold at a price of $15.00 each. The cost to produce the product is $8, but the equipment necessary for production must be leased for $42,000 per year. What is the break-even point? OA) 1,827 units. OB) 5,000 units. OC) 2,800 units. D) 6,000 units. E) 5,250 units. Question 2 (5) Question 3 (5 points) In order to produce a new product, a firm must lease equipment at a cost of $25,000 per year. The managers feel that they can sell 10,000 units per year at a price of $15.00. What is the highest variable cost that will allow the firm to at least break even on this project? A) $13.50. B) $12.50. OC) $14.50. OD) $16.50. E) $15.50. Question 4 (5 points) You have decided to start a vending machine business. A local store has space available for your machine but wants to charge you an annual fee to use the space. You estimate that you can sell 5,000 cans of soda each year. You sell a can of soda for $1.25, which allows you a profit of $0.50 per can. What is the most you would spend to lease the space for one year? A) $1,000. B) $2,500. OC) $7,500. D) $5,000. E) $10,000