Sales Estimated Fixed cost
Fixed cost Variable
Total cost
price Sales
per unit cost
$2.00 1,200,000 bags $300,000 $0.25 $0.50 $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