In order to produce a new product, a firm must lease equipment at a cost of $10,000 per year. The managers feel that they can sell 5,000 units per year at a price of $7.50. What is the highest variable cost that will allow the firm to at least break even on this project?
A) $2.50.
B) $3.50.
C) $4.50.
D) $5.50.
E) $6.50.

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The Answer of In order to produce a new product, a firm must lease equipment at a cost of $10,000 per year. The managers feel that they can sell 5,000 units per year at a price of $7.50. What is the highest variable cost that will allow the firm to at least break even on this project?
A) $2.50.
B) $3.50.
C) $4.50.
D) $5.50.
E) $6.50.

In Order to Produce a New Product, a Firm Must