To calculate the total profit for selling 100 units, total revenue ($4,000) is subtracted from the sum of the fixed costs ($1,500) and total variable costs ($2,000), resulting in a profit of $500.
The question involves calculating total profit for a company that has a fixed cost of $1,500, sells a product at $40 per unit, and has a variable cost of $20 per unit.
To calculate the total profit for 100 units sold, we must first find the total revenue and the total variable cost, then use these to find the profit.
First, calculate the total revenue by multiplying the selling price per unit by the number of units sold, which is $40 × 100 = $4,000.
Next, calculate the total variable cost by multiplying the variable cost per unit by the number of units sold, which is $20 × 100 = $2,000.
To find the profit, subtract the total costs (fixed plus variable) from the total revenue: Profit = Total Revenue - Total Costs = $4,000 - ($1,500 + $2,000) = $500.
Therefore, the total profit for selling 100 units is $500.