If sales revenue totals $84,000, selling price is $6 per unit, variable costs are $2.50 per unit and fixed costs are $48,000 per annum, the profit that will be earned is:Question 8Answera.$13,714b.$19,200c.$1,000d.$5,600
Question
If sales revenue totals 6 per unit, variable costs are 48,000 per annum, the profit that will be earned is:Question 8Answera.19,200c.5,600
Solution
To calculate the profit, we first need to find out how many units were sold. We can do this by dividing the total sales revenue by the selling price per unit.
So, 6 = 14,000 units.
Next, we calculate the total variable costs by multiplying the number of units sold by the variable cost per unit.
So, 14,000 units * 35,000.
Then, we calculate the total cost by adding the fixed costs to the total variable costs.
So, 48,000 = $83,000.
Finally, we calculate the profit by subtracting the total cost from the total sales revenue.
So, 83,000 = $1,000.
Therefore, the profit that will be earned is 1,000.
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