Blue Manufacturing Produces Lathes at an Inventory Cost of $25,000

Blue Manufacturing produces lathes at an inventory cost of $25,000 each that sell for $32,000. For credit-approved customers, Blue leases the lathes for $8,500 per year for five years. The lathes are guaranteed to last four years and generally have a six-year life.
-What is the manufacturing profit of Blue Manufacturing on a leased lathe?

A) $7,000
B) $8,500
C) $10,500
D) $17,500