Question

Jacklyn carves ice sculptures. She carves and sells 10 sculptures. Her average cost of production per sculpture is $50. She sells each sculpture for a price of $150. Jacklyn's total profits are:______

a. $150.
b. $1,000.
c. $500.
d. $1,500.

Answer 1

b. $1,000

Step-by-step explanation:

To start with, we know that the formulae for total profit is;

= total revenue - total cost.

Total revenue

= price × quantity

= $150 × 10

= $1,500

Total cost

= units sold × average cost of production per sculpture

= 10 × $50

= $500

Therefore,

Total profit = $1,500 - $500

Total profit = $1,000