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Leesburg Bags produces backpacks. The costs and prices for the backpacks follow (Assume the same unit costs in all years): Selling price $23.00 per backpack
Leesburg Bags produces backpacks. The costs and prices for the backpacks follow (Assume the same unit costs in all years):
Selling price | $23.00 per backpack |
Variable costs: |
Production | $10.00 per backpack | |
Selling | $2.00 per backpack |
Fixed Costs: |
Production | $900,000 per year | |
Selling and administrative | $540,000 per year |
A. | $2,200,000 |
B. | $1,048,000 |
C. | $760,000 |
D. | $1,300,000 |
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