Final answer:
One quick and dirty investment formula figures that operating revenue option b is answer
Step-by-step explanation:
In the given scenario, the company produces 5 units and sells each unit for $25. To determine the company's profits or losses, we need to subtract the total costs from the total revenues. In this case, the total revenues would be $125 (5 units x $25), and the total costs would be $130. Therefore, the company would experience losses (or negative profits) of $5.
Accounting profit is found by taking the total revenue and subtracting the explicit costs. For example, when a firm has revenues of $200,000 and explicit costs of $85,000, the accounting profit would be $200,000 - $85,000 = $115,000. This is a crucial calculation for businesses to assess their financial performance. option b is answer