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Corp makes and sells 50 bottles per day. Fixed costs are $30,000 and the total variable costs for manufacturing 50 bottles are $10,000. Each bottle
Corp makes and sells 50 bottles per day. Fixed costs are $30,000 and the total variable costs for manufacturing 50 bottles are $10,000. Each bottle is sold for $1,000. How would the dally operating income change if the daily number of units sold drops by 10%?
A) decrease by $4,000 B)decrease by $5, 000 C)decrease by $6,000 D)no change in operating income E)increase by $5,000
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