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What is the most the firm can spend to lease

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Reference no: EM133030079

Question - In order to produce a new product, a firm must lease new equipment. The managers feel that they can sell 10,000 units per year at a price of $7.50. If the variable cost of production is $5.00 per unit, what is the most the firm can spend to lease the new equipment without losing money?

a. $10,000.

b. $15,000.

c. $20,000.

d. $25,000.

e. $30,000.

Reference no: EM133030079

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