Question

last year aphrodite had fixed costs of 180.000 and their average selling price was 80. variable costs were 2/5ths of the average selling price and the business sold 8.000 items. calculate how much profit Aphrodite made last year

Answer 1

Aphrodite's profit for last year was $204,000, calculated by subtracting the sum of fixed and variable costs from the total revenue.

Step-by-step explanation:

To calculate Aphrodite's profit for last year, we first need to determine the total revenue, total variable costs, and then subtract these along with the fixed costs from the revenue.

The variable costs were 2/5ths of the average selling price of $80, which is $32 per item ($80 × 2/5 = $32). Aphrodite sold 8,000 items, so the total revenue is 8,000 items × $80 = $640,000. The total variable costs are 8,000 items × $32 = $256,000.

Now we can calculate profit: Profit = Total Revenue - (Fixed Costs + Variable Costs) = $640,000 - ($180,000 + $256,000) = $204,000 profit.

Answer 2

Aphrodite made 204 in profits

Step-by-step explanation:

profits= Sales - total costs

1. Calculating sales: price X units( 80X8.00)= 640.00

2. Calculating total costs: fixed costs+ variable costs

variable cost per unit (2/5x80)=32

total variable: costs per x total units(32X8.0)= 256

total cost : fixed cost + variable costs( 180+256)=436

3. Calculating profits: 640-436=204

Aphrodite made 204 profits