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4 votes
THEN USE THE FOLLOWING TO CALCULATE GROSS PROFIT

ITEM:
Snowball (Small)
Snowball (Large)
Nachos w/ peppers
Hot Dog
Fountain Drink
COST TO MAKE:
$.45
$.65
$1.50
$.75
$.20
What is the TOTAL COST:
CUSTOMER PRICE:
$2.00
$3.00
$5.25
$3.50
$2.00
UNITS SOLD
45
60
22
18
28

1 Answer

4 votes

The gross profit from the sales is $393.15.

1. Calculate the total cost:

To find the total cost, we multiply the cost to make each item by the number of units sold and sum them up.

Total cost = (Cost to make Snowball (Small) × Units sold) + (Cost to make Snowball (Large) × Units sold) + (Cost to make Nachos w/ peppers × Units sold) + (Cost to make Hot Dog × Units sold) + (Cost to make Fountain Drink × Units sold)

Total cost = ($0.45 × 45) + ($0.65 × 60) + ($1.50 × 22) + ($0.75 × 18) + ($0.20 × 28)

Total cost = $20.25 + $39.00 + $33.00 + $13.50 + $5.60

Total cost = $111.35

2. Calculate the total revenue:

To find the total revenue, we multiply the customer price of each item by the number of units sold and sum them up.

Total revenue = (Customer price of Snowball (Small) × Units sold) + (Customer price of Snowball (Large) × Units sold) + (Customer price of Nachos w/ peppers × Units sold) + (Customer price of Hot Dog × Units sold) + (Customer price of Fountain Drink × Units sold)

Total revenue = ($2.00 × 45) + ($3.00 × 60) + ($5.25 × 22) + ($3.50 × 18) + ($2.00 × 28)

Total revenue = $90.00 + $180.00 + $115.50 + $63.00 + $56.00

Total revenue = $504.50

3. Calculate the gross profit:

Gross profit is the difference between total revenue and total cost.

Gross profit = Total revenue - Total cost

Gross profit = $504.50 - $111.35

Gross profit = $393.15

Therefore, the gross profit from the sales is $393.15.

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