Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rally Synthesis Inc. manufactures and sells 90 bottles per day. Fixed costs are $24,000 and the variable costs for manufacturing 90 bottles are $36,000 .

Rally Synthesis Inc. manufactures and sells 90 bottles per day. Fixed costs are $24,000 and the variable costs for manufacturing 90 bottles are $36,000 . Each bottle is sold for $1100. How would the daily profit be affected if the daily volume of sales drop by 10%?

A.profits are reduced by $32,700

B.profits are reduced by $6,300

C.profits are reduced by $9,900

D.profits are reduced by $3600

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

British And German Banking Strategies

Authors: S. Janssen

1st Edition

0230220487, 9780230220485

More Books

Students also viewed these Accounting questions