Question

Rally synthesis inc. manufactures and sells 100 bottles per day. fixed costs are $22,000 and the variable costs for manufacturing 100 bottles are $30,000. each bottle is sold for $1,200. how would the daily profit be affected if the daily volume of sales drop by 10%? select one:
a. profits are reduced by $9,000
b. profits are reduced by $3,000
c. profits are reduced by $12,000
d. profits are reduced by $59,000

Answer 1

I think it’s c
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