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

Ed's revenue from selling his most popular arrangement is $45.

Ed's total production costs for one flower arrangement are $5 (materials) + $12 (labor) + $5 (other) = $22.

Ed's profit on each arrangement is $45 − $22 = $23.