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How would the daily profit be affected

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Question - 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

Reference no: EM132497135

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