Use the Information Below to Answer the Following Questions

question 6

Multiple Choice

Use the information below to answer the following questions.
Sales Extraordinaire sells one particular photo frame. It estimates that it can sell as many frames as it produces. Sales price per unit $5.00
Variable cost per unit $2.00
Fixed costs per annum $9,000
-Refer to the table above. The sale of 5,000 photo frames would result in:

• A) a loss of $3,000.
• B) a loss of $2,000.
• C) a profit of $6,000.
• D) a profit of $5,000.