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A manufacturer produces a product that sells for $10 per unit. Variable costs per unit...

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Accounting

A manufacturer produces a product that sells for $10 per unit. Variable costs per unit are $6 and total fixed costs are $12,000. At this selling price, the company earns a profit equal to 10% of total dollar sales. By reducing its selling price to $9 per unit, the manufacturer can increase its unit sales volume by 25%. Assume that there are no taxes and that total fixed costs and variable costs per unit remain unchanged. If the selling price were reduced to $9 per unit, the profit would be A. $3,000 B. $4,000 C. $5,000 D. $6,000

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