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 $50.00 each. The cost to produce the product is $35.00, but the equipment necessary for production must be leased for $100,000 per year. What is the break-even point?

A) 3,333 units.
B) 5,000 units.
C) 6,667 units.
D) 7,500 units.
E) 8,167 units.