Exhibit 6-2 Victor Company Makes a Single Product.The Company Has Monthly Fixed

Multiple Choice

Exhibit 6-2
Victor Company makes a single product.The company has monthly fixed costs totaling $200,000 and variable costs of $20 per unit.Each unit of product is sold for $35.Brevard expects to sell 25,000 units each month.
-Refer to Exhibit 6-2.What would be the operating profit if total fixed costs decreases 20 percent?

A) $302,500
B) $135,000
C) $215,000
D) $315,000
E) None of the answer choices is correct.