The ABC Corporation Is Considering Introducing a New Product,which Will

question 34

Multiple Choice

The ABC Corporation is considering introducing a new product,which will require buying new equipment for a monthly payment of $5,000.Each unit produced can be sold for $20.00.ABC incurs a variable cost of $10.00 per unit.What is ABC's monthly break-even amount in dollars?

• A)$100,000
• B)$10,000
• C)$5,000
• D)$50,000
• E)$1,000

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