Answer:
£53,000, £83,000, £82,000
Step-by-step explanation:
Let's figure out how much the State Valley spends on fixed costs.
13,000 + 2,500 + 35,000 + 3,000 = 53,500
The State valley spends £53,000 on fixed costs every year.
The next question asks for the total costs of State Valley for the year, assuming that they sell 60,000 units.
Let's figure out the wage fee from selling 60,000 units.
If each wage fee is £0.50, we can use this equation.
60,000 × 0.5 = 30000
The State Valley pays £30,000 for wage fees.
To find the total costs for State valley for that year, we would need to add the fixed fees and the wage fees.
53,000 + 30,000 = 83,000
The State Valleys total costs for the year is £83,000.
Now it's asking the total revenue of selling 60,000 units.
We first would need to figure out how much the State Valley would buy a bag of blue stale chippings (bsc).
(Cost of bag + wage fees = total cost of bag)
1.75 + 0.50 = 2.25
The State valley buys a bag of bsc for £2.25.
If they sell a bag of bsc for £4.50, we need to figure out their profit on each bag.
4.50 - 2.25 = 2.25
They make a profit of £2.25 on each bag of bsc they sell.
Now multiply that by 60,000:
2.25 × 60,000 = 135,000
They make a total revenue of £135,000 by selling 60,000 units.
Now, if we were to subtract the fixed costs from that:
135,000 - 53,000 = 82,000
The State Valley makes £82,000 by selling 60,000 units.