rally synthesis inc. manufactures andsells 100 bottles per day. fixed costs are$22,000 and the variable costs formanufacturing 100 bottles are $30,000.Each bottle is sold for $1,200.how would the daily profit be affected ifthe daily volume of sales drop by 10%?

As we all know that the fixed cost remain same at all levels of production and sales. Therefore,…

Answered: rally synthesis inc. manufactures and…

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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rally synthesis inc. manufactures and sells 100 bottles per day. fixed costs are $22,000 and the variable costs for manufacturing 100 bottles are $30,000. Each bottle is sold for $1,200. how would the daily profit be affected if the daily volume of sales drop by 10%?