The ABC Corporation is considering introducing a new product, which will require buying new equipment for a monthly payment of $5,000. Each unit produced can be sold for $20.00. ABC incurs a variable cost of $10.00 per unit
How many units must ABC sell each month to break even?
A) 500 units
B) 5000 units
C) 250 units
D) 2500 units
E) 25 units
A
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