Maize Plastics Manufactures and Sells 50 Bottles Per Day

Multiple Choice

Maize Plastics manufactures and sells 50 bottles per day.Fixed costs are $30,000 and the variable costs for manufacturing 50 bottles are $10,000.Each bottle is sold for $1,000.How would the daily profit be affected if the daily volume of sales drop by 10%?

A) profits are reduced by $4,000
B) profits are reduced by $1,000
C) profits are reduced by $5,000
D) profits are reduced by $6,000