Question

The table shows the estimated sales for two different prices of bags of chips. Calculate the profit per bag for the bags sold at $1 each.

Answer 1

The profit per bag for the bags sold at $1 each is 0.35

The correct option is: (D)

What is profit?

Profit is the positive financial gain remaining after all costs, taxes, and expenses have been deducted from total sales.

Profit per bag for the bags sold at $1 each be,

Profit = (Estimated sales -(Estimated Sales* Variable cots +Fixed cost))/Estimated Sales

We know,

Estimated sales= 1600000

Variable cost = 0.40

Fixed cost= 400000

So, Profit = $\frac{1600000-(1600000*0.40+400000)}{1600000}$

               = $\frac{1600000-(1040000)}{1600000}$

              = $\frac{560000}{1600000}$

              = 0.35

Hence, the profit per bag be 0.35.

Learn more about profit here:

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