To calculate profit, we can use the formula:
\[ \text{Profit} = \text{Revenue} - \text{Total Costs} \]
Where Total Costs is the sum of fixed costs and variable costs (labor costs + other variable costs).
Given:
- Revenue = $100
- Fixed costs = $20
- Labor costs = $40
- Other variable costs = $5
First, we calculate the total variable costs:
\[ \text{Total Variable Costs} = \text{Labor Costs} + \text{Other Variable Costs} = 40 + 5 = 45 \]
Next, we calculate the Total Costs:
\[ \text{Total Costs} = \text{Fixed Costs} + \text{Total Variable Costs} = 20 + 45 = 65 \]
Now we can find the Profit:
\[ \text{Profit} = \text{Revenue} - \text{Total Costs} = 100 - 65 = 35 \]
Therefore, the profit is $35.