Acme Shoe Co

Multiple Choice

Acme Shoe Co. sells heel replacement kits for men's shoes. It has fixed costs of $9 million and unit variable costs of $5 per pair. Acme is considering a switch from manual labor to an automated process. New equipment would cost an additional $4 million per year while lowering variable costs by $3 per shoe repair kit. How many kits would Acme have to sell at $17 per pair to make $2 million in profit in the next year with the automated process?

A) 117,648 kits
B) 428,572 kits
C) 705,883 kits
D) 916,667 kits
E) 1,000,000 kits