Question

Scenario:Ed is the proud new owner of a flower shop. His most popular arrangement sells for $45. Ed has determined that the cost of materials for this flower arrangement is $5. Ed has also determined that it takes his employee about one hour to complete one arrangement, and this employee is paid $12 per hour. Additional costs include $5 per arrangement to cover such expenses as rent and electricity.

Use the information presented in the scenario and the drop-down menus to answer these questions.

Ed's revenue from selling his most popular arrangement is
.

Ed's total production costs for one flower arrangement are
.

Ed's profit on each arrangement is
.

Answer 1

To calculate Ed's revenue, total production costs, and profit for one flower arrangement, we can use the information provided.

1. **Ed's revenue from selling his most popular arrangement** is the price at which he sells the arrangement:
- Revenue = Selling price = $45

2. **Ed's total production costs for one flower arrangement** includes the cost of materials, labor costs, and additional costs:
- Cost of materials = $5
- Labor cost = $12 (for one hour of work)
- Additional costs = $5
- Total production costs = Cost of materials + Labor cost + Additional costs
- Total production costs = $5 + $12 + $5 = $22

3. **Ed's profit on each arrangement** is calculated by subtracting the total production costs from the revenue:
- Profit = Revenue - Total production costs
- Profit = $45 - $22 = $23

So the answers are:

- Ed's revenue from selling his most popular arrangement is **$45**.
- Ed's total production costs for one flower arrangement are **$22**.
- Ed's profit on each arrangement is **$23**.