Acme Shoe Company Sells Heel Replacement Kits for Men's Shoes

Multiple Choice

Acme Shoe Company 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 profits 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