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

question 36

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.Suppose that ABC would like to realize a monthly profit of $50,000.How many units must they sell each month to realize this profit?

• A)500 units
• B)450 units
• C)4500 units
• D)5000 units
• E)5500 units

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