You are considering leasing a new machine for your construction company to increase productivity. The machine costs $100,000 to lease annually with no possible early cancellation. Use the following information to calculate the annual savings or loss from renting the new equipment. Maintenance Savings: $5 to $10 per unit Labor Savings: $1 to $5 per unit Raw Material Savings: $2 to $6 per unit Production Level: 10,000 to 30,000 units per year
a) $50,000 to $150,000
b) $20,000 to $60,000
c) $80,000 to $200,000
d) $30,000 to $90,000