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Maize Plastics manufactures and sells 70 bottles per day. Fixed costs are $28,000 and the variable costs for manufacturing 70 bottles are $14,000. Each bottle is sold for $900. How would the daily profit be affected if the daily volume of sales drops by 10%? (Hint: choose the nearest number if your answer is not exact) A. profits are reduced by $6,300 B. profits are reduced by $1,400 C. profits are reduced by $4,900 D. profits are reduced by $16,100

Maize Plastics manufactures and sells 70 bottles per day. Fixed costs are $28,000 and the variable costs for manufacturing 70 bottles are $14,000. Each bottle is sold for $900. How would the daily profit be affected if the daily volume of sales drops by 10%? (Hint: choose the nearest number if your answer is not exact) A. profits are reduced by $6,300 B. profits are reduced by $1,400 C. profits are reduced by $4,900 D. profits are reduced by $16,100

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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Maize Plastics manufactures and sells 70 bottles per day. Fixed costs are $28,000 and the variable costs for manufacturing 70 bottles are $14,000. Each bottle is sold for $900. How would the daily profit be affected if the daily volume of sales drops by 10%? (Hint: choose the nearest number if your answer is not exact) A. profits are reduced by $6,300 B. profits are reduced by $1,400 C. profits are reduced by $4,900 D. profits are reduced by $16,100
Transcribed Image Text:Maize Plastics manufactures and sells 70 bottles per day. Fixed costs are $28,000 and the variable costs for manufacturing 70 bottles are $14,000. Each bottle is sold for $900. How would the daily profit be affected if the daily volume of sales drops by 10%? (Hint: choose the nearest number if your answer is not exact) A. profits are reduced by $6,300 B. profits are reduced by $1,400 C. profits are reduced by $4,900 D. profits are reduced by $16,100
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