Question

Last month, Tech Industries sold its product for $50 per unit. Fixed production costs were $25,000, and variable production costs amounted to $10.50 per unit. Fixed selling and administrative costs totaled $15,000, and variable selling and administrative costs amount to $2.00 per unit. Tech Industries produced and sold 5,000 units last month.

Answer 1

Operating profit = $147,500

Step-by-step explanation:

Missing question is "What is the total operating profit?

Operating profit = Sale unit(Selling price - Variable Cost) - Fixed expenses

Operating profit = 5,000 * ($50 - $10.50 - $2.00) - $25,000 - $15,000

Operating profit = 5,000*$37.5 - $40,000

Operating profit = $187,500 - $40,000

Operating profit = $147,500