A Manager Has Determined That a Potential New Product Can

Multiple Choice

A manager has determined that a potential new product can be sold at a price of $20.00 each. The cost to produce the product is $10.00, but the equipment necessary for production must be leased for $75,000 per year. What is the break-even point?

A) 2,500 units.
B) 5,000 units.
C) 7,500 units.
D) 10,000 units.
E) 25,000 units.