Fixed cost Fixed cost Variable
cost
Total cost
per unit
$0.25
$0.50
Sales Estimated
price Sales
$2.00 1,200,000 bags $300,000
$0.75
$3.00 600,000 bags $300,000 $0.50 $0.50 $1.00
The table shows the estimated sales for two different
prices of bags of chips. Calculate the total profit
when selling bags for $2 each.
A. $1,500,000
B. $900,000
C. $1,000,000
D. $2,400,000