136k views
0 votes
Grady Tire Company manufactures racing tires for bicycles and sells them for $80 each.

What is the total revenue that Grady expects to generate in the first quarter if they sell 10,000 tires?
(A) $200,000
(B) $400,000
(C) $600,000
(D) $800,000

1 Answer

1 vote

Final answer:

To find the total revenue, multiply the selling price of $80 per tire by the number of tires sold, which is 10,000. The total revenue for Grady Tire Company in the first quarter would be $800,000. Option D is the correct answer.

Step-by-step explanation:

The student is asking about the total revenue generated by Grady Tire Company from the sale of bicycle racing tires. The revenue can be calculated by multiplying the selling price per tire by the total number of tires sold.

According to the information provided, Grady Tire Company sells each racing tire for $80.

If they expect to sell 10,000 tires in the first quarter, the total revenue can be found by multiplying:

Total Revenue = Selling Price per Tire × Number of Tires Sold

Total Revenue = $80 × 10,000 = $800,000.

Therefore, the correct answer to the question is (D) $800,000.

User Steveax
by
7.1k points