Question

Monson sells 15 units for $20 each on December 15:

a) Revenue is $300
b) Profit is $20
c) Cost per unit is $15
d) Total cost is $300

Answer 1

The total revenue is $300, profit is $75, cost per unit is $15, and the total cost is $225.

Step-by-step explanation:

a. Total revenues in this example will be a quantity of 15 units multiplied by the price of $20/unit, which equals $300.

b. Profit is calculated by subtracting the total cost from the total revenue. In this case, the total cost is $15 per unit multiplied by 15 units, which equals $225. Therefore, the profit is $300 - $225 = $75.

c. The cost per unit is given as $15.

d. Total cost is calculated by multiplying the cost per unit by the number of units. In this case, the total cost is $15 multiplied by 15 units, which equals $225.