Plymouth Corp. sells units for $100 each. Variable costs are $75 per unit, and fixed costs are $200,000. If Plymouth leases a new machine, production will be more efficient, saving $5 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?
A. $60,000
B. $40,000
C. $10,000
D. $80,000
Answer: A
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Paid $275 cash for January utilities. Based on this information, the amount of total stockholders' equity reported on the Balance Sheet at the end of the month would be: A. $40,175. B. $31,400. C. $30,875. D. $39,200. E. $31,150.
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Automation is characterized by low initial costs and high operating costs.
Answer the following statement true (T) or false (F)