1. Total cost = variable cost + Fixed cost
= 300*8/10 +280
= $520
Option A. is correct answer.
2. Profit at selling price 30 = Sales - variable cost - fixed cost
= 300*30 - 300*10-1000 = $5000
Profit at selling price of $25 = 320*25-320*10-1000
= $3800
Profit will decrease by = 5000-3800 = $1200
Option D. is correct answer.
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