Question

Kalteen sells 100 weight gain bars for $5 each. If Kalteen's average total cost of producing each bar is $3, what is Kalteen's profit?

A. $1500
B. $2
C. $300
D. $500
E. $200

Answer 1

To calculate Kalteen's profit, subtract the total cost from the total revenue. The profit would be $200.

Step-by-step explanation:

To calculate the company's profit or loss, we need to subtract the total cost from the total revenue. The total revenue is obtained by multiplying the number of units sold (100) by the selling price ($5), which equals $500. The total cost is obtained by multiplying the average cost of producing each bar ($3) by the number of units sold (100), which equals $300. Therefore, the company's profit is $500 - $300 = $200.