CBA Company's e-tail website was shut down by a cyber-attack for one day. The sales loss is $875,000. An outside tech security company will restore the site and charge $90 per hour. Restoration is estimated to take 100 hours. The summary quarterly report for CBA follows: Sales $12,000,000; variable costs $8,000,000; and fixed costs $1,000,000.

Determine the loss from the cyber-attack. Please show your calculation.

a. $227,750.

b. $291,667.

c. $300,667.

d. $884,000.

Expert