Rally Synthesis Inc. manufactures and sells 90 bottles per day. Fixed costs are $26,000 and the variable costs for manufacturing 90 are $36,000. Each bottle is sold for $1,600. How would the daily profit be affected if the daily volume of sales drop by 20%?

A.

profits are reduced by $28,800

B.

profits are reduced by $7,200

C.

profits are reduced by $21,600

D.

profits are reduced by $60,400