Asked by janay1978
Healthy food Inc sells 50lb bags of grapes to the military for $10 a bag.
The fixed costs of this operation are $80,000 while the variable costs of the grapes are $10 per lb.
Calculate the profit or loss on 12,000 bags and on 25,000 bags. Can you please walk me through on how to come to the answer. I am so confused.
The fixed costs of this operation are $80,000 while the variable costs of the grapes are $10 per lb.
Calculate the profit or loss on 12,000 bags and on 25,000 bags. Can you please walk me through on how to come to the answer. I am so confused.
Answers
Answered by
DrBob222
How much will 12,000 bags of grapes bring in sales? 12,000 bags x $10/bag = $120,000
The profit is the sales - fixed costs = 120.000 - 80,000 = $40,000 profit.
Do the same for the 25,000 bags. Post your work and detail exactly what you don't understand if you get stuck.
The profit is the sales - fixed costs = 120.000 - 80,000 = $40,000 profit.
Do the same for the 25,000 bags. Post your work and detail exactly what you don't understand if you get stuck.
Answered by
Ms. Sue
What about the variable costs of $10 per pound?
Answered by
DrBob222
I read that as $10/bag and not $10/lb. Disregard my work. Thanks Ms. Sue.
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