Question

Emma owns a flower shop in tampa. she pays $3,091 per month to lease her building, $2,208 in wages, $1,887 for flowers and other supplies and she produces 662 flower arrangements per month. suppose emma sells her flower arrangements for $39 each and sells 611 per month. given the information available we know that her total revenue equals ________ while her average total cost equals ____________.

Answer 1

To solve for total costs = $3,091 + $2,208 + $1,887 = $7,186 then we need to divide this based on the 662 arrangements she normally produces = $10.85 per arrangement is what she spends.

To solve for total revenue = (611)($10.85) = $6,632 total costs for 611 arrangments. (611)($39) = $23,829 - $6,632 = $17,197 is the total revenue earned for 611 arrangments.