Question

The price of a mango is $2 and a farmer sells 2,000 mangos. However, the costs to the farmer are $400 for labor, $1,600 for rent, and $2,000 for advertising. Based on the above information, the farmer: Group of answer choices makes $2,000 in total revenue. makes $4,000 in total revenue. makes $2,000 in profit. loses $2,000 in profit.

Answer 1

makes $4,000 in total revenue

Step-by-step explanation:

Total revenue = price × quantity sold

= $2 × 2000 = $4,000

The farmer makes $4,000 in total revenue

Total cost = $1600 + $400 + $2000 = $4,000

Profit / loss = Total revenue- Total Cost

= $4000 - $4000 = $0