Homework Answers
Solution:
Sales = 125 * $ 48 =$ 6,000
Variable cost = 125 * $ 22 = $ 2,750
Fixed cost = $ 1,200
Projected profit = Sales - Variable cost - Fixed cost
Projected profit = $ 6,000 - $ 2,750 - $ 1,200 = $ 2,050
So Option D) $ 2,050 is Correct Answer.
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