Respuesta :

gievn :

Toatal cost per unit = $0.90

Fixed cost = $ 400000

Thus cost for 800,000 bags = $ 0.90 * 800,000

= $ 720000

the selling price for 1 unit = $ 2.

thus for 800,000 = 2 * 800,000

= $ 1,600,000.

Thus, profit = 1,600,000 - 720000

= $ 880,000.

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