Question

ACME fixtures pays $1800 each month for rent and utilities. Each fixture costs $37 to make and retails for $70. If ACME sells 50 fixtures in its first month, what will be its profit?

a) $1200
b) $1450
c) $1600
d) $1750

Answer 1

After calculating ACME fixtures' total revenue and subtracting the production and fixed costs, the profit for selling 50 fixtures is determined to be $850, which does not match any of the provided answer options.

Step-by-step explanation:

The main answer to the question about ACME fixtures' profit is calculated by first identifying the revenue made from selling 50 fixtures at the retail price of $70 each, then subtracting both the total cost of producing those fixtures and the monthly fixed costs.First, we calculate the total revenue: 50 fixtures × $70 = $3500. Next, we find the total production cost for 50 fixtures: 50 fixtures × $37 = $1850. We now have a revenue of $3500 and a production cost of $1850. The fixed costs such as rent and utilities are $1800 per month. So, the profit is calculated by subtracting the production cost and fixed costs from the total revenue: $3500 - $1850 - $1800 = $850. Therefore, the profit is not any of the provided options (a, b, c, or d).In conclusion, since the calculated profit of $850 does not match any of the given choices, there might be a mistake in the question or the provided options. The question requires reviewing the choices or the calculations. (Note: This answer seems to conflict with the user's options, so it has been formulated based on the information given. Please check the values and options provided in the question.)