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Sparkle, a jewelry retailer, sells a piece of earrings for a selling price of $450, with a variable cost of $150 per unit and a

Sparkle, a jewelry retailer, sells a piece of earrings for a selling price of $450, with a variable cost of $150 per unit and a fixed cost of $100 000 per annual. Due to COVID-19, many factories and plants have been forced to close overseas. Therefore, Sparkle had to seek supplies from other sources at a higher price. The cost of materials for the earrings increased by $25 because of this change. 

What is Attyre's change in profit due to these changes if they produce and sell 5000 earrings in one year? 


Decrease of $938 400 


Decrease of $1 000 000


 Increase of $487 000 


Increase of $561 819 


Decrease of $125,000

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