Question

James sold 100 pizzas at $15 each yesterday at his store. his fixed costs to operate his store are $600 per day and the variable costs (ingredients) per pizza are $7. how much profit did james show yesterday after he paid all of his expenses? group of answer choices

Answer 1

After deducting fixed costs of $600 and variable costs of $700 from the total revenue of $1500, James's profit for the day is $200.

Step-by-step explanation:

James sold 100 pizzas at $15 each, resulting in total revenue of $1500 (revenue = number of pizzas × price per pizza). To calculate the profit, we must subtract both fixed costs and variable costs from the total revenue. James's fixed costs are $600, and his variable costs are $7 per pizza, adding up to $700 for 100 pizzas (variable costs = number of pizzas × cost per pizza). The profit can be calculated as follows:

profit = total revenue - (fixed costs + variable costs)

Substituting the values we get:

profit = $1500 - ($600 + $700)

profit = $1500 - $1300

profit = $200

Therefore, James's profit after paying all of his expenses for the day is $200.