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 the unit variable cost decreases 20 percent?

A) $75,000
B) $275,000
C) $100,000
D) $120,000
E) None of the answer choices is correct.