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taurus [48]
3 years ago
6

Arlene makes earrings in the shape of the mascot of a local university. Last year Arlene made 250 pairs of earrings, which she s

old to the university bookstore for $10 each. Arlene works out of her home, so her only cost is $3 per pair for materials and $85 for tax help. If Arlene didn't produce earrings, she would spend her time babysitting her nephews and make about $500 per year. a. Arlene's economic profit is $1,665. b. Arlene's accounting profit is $1,165 c. Arlene's total costs are $835. d. Arlene's total revenue is $2500.
Business
1 answer:
kozerog [31]3 years ago
3 0

Answer:

d. Arlene's total revenue is $2500.

Explanation:

Given that

Number of earrings pair = 250

Sale value each = $10

Material cost per pair = $3

For tax help =$85

Per year produce value = $500

By considering the above information

The total revenue would be

= Number of earrings pair × sale value each

= 250 pairs × $10

= $2,500

Hence the total revenue is $2,500

Only d option is a true statement rest options are wrong.

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