Question

Judiyah is the proud new owner of a chair making business. She makes custom wood chairs. She sells her custom chairs for

$150. The cost of rent and the expensive saws and equipment she bought add up to about $50 a chair. The wood she uses is
standard wood and the materials to make one chair cost about $30. She pays one worker to help her move the chairs into people's
home. Everytime she sells a chair, she pays this worker

$10 for the hour of work to transport the homemade chair.


What is judiyah’s profit ?

Answer 1

$60

Explanation:

Profit = revenue - total cost

cost is total expenses incurred in running the business

total cost = cost of rent and the expensive saws and equipment + cost of wood + amount paid to worker

50 + 30 + 10 = 90

revenue is the amount earned from selling the chairs. it is equal to 150

Profit = 150 - 90 = 60