Question

Table 1 contains information about a small business for one month. The business

sold 270 units this month. Using the information in Table 1, calculate the profit for
this business. You are advised to show your workings
Fixed costs
£2 100
Variable costs (per unit)
£110
Sales price (per unit)
£200

Answer 1

workings. Number of units sold: 240. Fixed costs: £1 100. Variable costs per unit: 45 pence. (2) ... You are advised to show your workings. (2). (Total for question = 2 marks). Q6 ... Table 1 contains information about a small business for one month. ... Using the information in Table 1, calculate the profit for this business. You ...

Step-by-step explanation:

Answer 2

Profit during month = £22,200

Step-by-step explanation:

Given:

Number of unit sold = 270

Fixed costs = £2,100

Variable costs (per unit) = £110

Sales price (per unit) = £200

Find:

Profit during month

Computation:

Total sales value = Number of unit sold x Sales price (per unit)

Total sales value = 270 x £200

Total sales value = £54,000

Total Variable costs value = Number of unit sold x Variable costs (per unit)

Total Variable costs value = 270 x £110

Total Variable costs value = £29,700

Profit during month = Total sales value - Total fixed cost - Total Variable costs value

Profit during month = £54,000 - £2,100 - £29,700

Profit during month = £22,200