In Order to Produce a New Product, a Firm Must

Multiple Choice

In order to produce a new product, a firm must lease new equipment. The managers feel that they can sell 10,000 units per year at a price of $7.50. If the variable cost of production is $5.00 per unit, what is the most the firm can spend to lease the new equipment without losing money?

A) $10,000.
B) $15,000.
C) $20,000.
D) $25,000.
E) $30,000.