Javier Is the Business Manager at His College

Multiple Choice

Javier is the business manager at his college. In his role, Javier makes a lot of business decisions. Javier has installed a vending machine in a dorm for soft drinks. The machine rents for $200 a month and the electrical use is minimal. Javier buys soft drinks for $.25 each and charges $.75 each from the vending machine. Currently, the machine has a sales volume of 400 cans a month. Javier thinks lowering the price to $.60 each will increase sales by 100 cans a month. What affect will this have on profit or loss?

A) Loss of $25
B) Loss of $100
C) Profit of $100
D) Profit of $200