Sensitive, Inc. is currently selling 2,400 bottles of hand lotion per month at $10 per bottle. Manufacturing a bottle of lotion incurs $7.50 in variable costs. The company has $3,000 per month in fixed manufacturing overhead and $2,000 in fixed selling and administrative costs. What effect would a 5% decline in the number of bottles sold have on the bottom line?

Box 1: Select the best answer