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Rally Synthesis Inc. manufactures and sells 60 bottles per day. Fixed costs are $22,000 and the variable costs for manufacturing 60 bottles are $18,000. Each
Rally Synthesis Inc. manufactures and sells 60 bottles per day. Fixed costs are $22,000 and the variable costs for manufacturing 60 bottles are $18,000. Each bottle is sold for $1,300. How would the daily profit be affected if the daily volume of sales drop by 20%?
A. profits are reduced by 3600
B. profits are reduced by 12000
C. profits are reduced by 26000
D. profits are reduced by 15600
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