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Amiraneli [1.4K]
4 years ago
12

Rally Synthesis Inc. manufactures and sells 60 bottles per day. Fixed costs are $23,000 and the variable costs for manufacturing

60bottles are $12,000. Each bottle is sold for $1,200. How would the daily profit be affected if the daily volume of sales drop by 10​%?
Business
1 answer:
In-s [12.5K]4 years ago
5 0

Answer:

Profit would decrease by $10,000

Explanation:

Contribution margin per bottle = 1200 - (12,000 / 60) = 1,000

=$1200 - $200

= $1,000

Change in profit = 10 * $1,000 = $10,000

Profit would decrease by $10,000

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