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ABC Inc. currently manufactures and sells 90 units per day. Fixed costs are $30,000 and the variable costs for manufacturing 90 units are $45,000. Eac s sold for $1,300. How would their profit be affected if the daily sales volume drops by 20%? O Profits are reduced by $14,400. O Profits are reduced by $21,600 O Profits are reduced by $9,260

ABC Inc. currently manufactures and sells 90 units per day. Fixed costs are $30,000 and the variable costs for manufacturing 90 units are $45,000. Eac s sold for $1,300. How would their profit be affected if the daily sales volume drops by 20%? O Profits are reduced by $14,400. O Profits are reduced by $21,600 O Profits are reduced by $9,260

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Inc. currently manufactures and sells 90 units per day. Fixed costs are $30,000 and the variable costs for manufacturing 90 units are $45,000. Each unit is sold for $1,300. How would their profit be affected if the daily sales volume drops by 20%? O Profits are reduced by $14,400 Profits are reduced by $21,600 O Profits are reduced by $9,260 O Profits are reduced by $23,400
Transcribed Image Text:ABC Inc. currently manufactures and sells 90 units per day. Fixed costs are $30,000 and the variable costs for manufacturing 90 units are $45,000. Each unit is sold for $1,300. How would their profit be affected if the daily sales volume drops by 20%? O Profits are reduced by $14,400 Profits are reduced by $21,600 O Profits are reduced by $9,260 O Profits are reduced by $23,400
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