Rally Synthesis Inc

question 221

Multiple Choice

Rally Synthesis Inc. manufactures and sells 100 bottles per day. Fixed costs are $22,000 and the variable costs for manufacturing 100 bottles are $30,000. Each bottle is sold for $1,200. How would the daily profit be affected if the daily volume of sales drop by 10%?

• A) profits are reduced by $9,000
• B) profits are reduced by $3,000
• C) profits are reduced by $12,000
• D) profits are reduced by $59,000

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Definitions:

Expected Duration

The anticipated amount of time which will elapse before a particular project or activity is completed.

Critical Path

The critical path is the longest sequence of activities in a project plan that must be completed on time for the project to finish by its due date.

Activity Variance

The difference between the expected performance or cost of an activity and its actual performance or cost.

Preceding Activity

In project management, an activity that must be completed before a subsequent activity can begin.