Question

Last month IT produced 2 600 calculators and spent $14 000 on advertising. If there are other fixed monthly costs of $24 500, and each calculator sells for $165, how much profit would be made if all the calculators are sold? ​

Answer 1

To determine the profit from selling all calculators, calculate total revenue by multiplying the number of calculators (2,600) by the price each sells for ($165). Subtract the total costs, which are the sum of advertising ($14,000) and other fixed costs ($24,500), from the total revenue. The final number represents the profit.

Step-by-step explanation:

To calculate the profit made by selling all the calculators, we and must first determine the total revenue and then subtract the total costs. The total revenue can be found by multiplying the number of calculators sold by the selling price per calculator. We are given that 2,600 calculators were produced and sold at $165 each.

Revenue = Number of calculators × Selling price per calculator = 2,600 × $165

The total costs consist of both variable costs and fixed costs. The variable costs are often represented by the marginal costs of production, but since we are not given this information for the calculators, we will focus on the fixed costs provided. These include the advertising costs and the other fixed monthly costs given as $14,000 and $24,500 respectively.

Total Costs = Advertising Costs + Other Fixed Monthly Costs = $14,000 + $24,500

Finally, we can find the profit by subtracting the Total Costs from the Total Revenue.

Profit = Total Revenue - Total Costs

Now we need to plug in the numbers and calculate the respective values to get the final profit.

Answer 2

$390,500

Step-by-step explanation:

To calculate the profit, we need to consider the revenue generated from selling the calculators and subtract the total costs.

The revenue is the total income generated from selling the calculators.

Given that 2,600 calculators were sold at a selling price of $165 per calculator, then the total revenue (R) is:

`R=\textsf{Number of calculators sold} * \textsf{Selling price per calculator}`

`R=2\:600 * \$165`

`R=\$429\:000`

Total costs include advertising costs, fixed monthly costs, and any other relevant costs. Given that $14,000 was spent on advertising and $24,500 was spent on other monthly costs, the total costs (C) is:

`C=\textsf{Advertising costs}+\textsf{Any other costs}`

`C=\$14\:000+\$24\:500`

`C=\$38\:500`

The profit (P) is the difference between revenue and total costs. Therefore:

`P=R-C`

`P=\$429\:000-\$38\:500`

`P=\$390\:500`

Therefore, a profit of $390,500 would be made if all the calculators sold.