Production has indicated that they can produce widgets at a cost of $3.00 each if they lease new equipment at a cost of $10,000. Marketing has estimated the number of units they can sell at a number of prices (shown below). Which price/volume option will allow the firm to avoid losing money on this project?
A) 7,500 units at $17.50 each.
B) 4,000 units at $20.00 each.
C) 3,000 units at $22.50 each.
D) 2,500 units at $25.00 each
E) 1,500 units at $27.50 each.

Question

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The Answer of Production has indicated that they can produce widgets at a cost of $3.00 each if they lease new equipment at a cost of $10,000. Marketing has estimated the number of units they can sell at a number of prices (shown below). Which price/volume option will allow the firm to avoid losing money on this project?
A) 7,500 units at $17.50 each.
B) 4,000 units at $20.00 each.
C) 3,000 units at $22.50 each.
D) 2,500 units at $25.00 each
E) 1,500 units at $27.50 each.

Production Has Indicated That They Can Produce Widgets at a Cost