Question

A screwdriver set has a selling price per unit of $27.95. It also has fixed costs of $837,500, variable costs per unit of $3.25 and estimated sales of 55,000. What is the possible net profit?

A) $1,016,250
B) $521,000
C) $247,500
D) $1,537,250

Answer 1

The final price the store is going to get is 1,537,250. That is the price per unit times the price overall you multiply to get the final price which is 1,537,250. That is how much the store is going to earn overall. The price from the company for the screw drivers was 837,500. They have to pay the company back s they subtract that from 1,537,250 and they get 699,750 then you have to multiply 55,000 by 3.25 because that is the range. and you get 178,750 so you subtract 699,750 by 178,750. Then you get $521,000 and that's your answer.

Answer 2

A) $1,016,250 is the right answer