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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