SAVANNAH DESIGNS CVP PROBLEM:

Savannah owns a company called Savannah Designs, which makes bracelets with semiprecious stones and sells them at a local market. Savannah currently sells her bracelets for $$175$ each. Her variable costs per bracelet are the metal and stones $($approximately $$80$ per bracelet$)$ and packaging $($$$5$ per bracelet$).$ She has total annual fixed costs of $$9,000,$ comprised of $$8,500$ for space at the market and $$500$ depreciation on display cases and signage.

If Savannah's best guess is that she will sell $1,000$ bracelets in the current year, what is her expected profit for the year?

Question $17$ options:

$$175,000$

$$81,000$

$$90,000$

$$126,400$