Example 2.2
The information below is used for the following problems.
Garrison's Gaskets has variable costs of $3 per unit and fixed costs of $40 000. Garrison's selling price is $5 per unit.
-Refer to Example 2.2. How much profit will Garrison's earn if it cuts its selling price to $4 per unit, and sells 100 000 units?
A) $60 000.
B) $100 000.
C) $360 000.
D) $400 000.
Correct Answer:
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