Question

Scenario:Ed is the proud new owner of a flower shop. His most popular arrangement sells for $45. Ed has determined that the cost of materials for this flower arrangement is $5. Ed has also determined that it takes his employee about one hour to complete one arrangement, and this employee is paid $12 per hour. Additional costs include $5 per arrangement to cover such expenses as rent and electricity.
Use the information presented in the scenario and the drop-down menus to answer these questions.

Ed's revenue from selling his most popular arrangement is .

Ed's total production costs for one flower arrangement are .

Ed's profit on each arrangement is

Answer 1

Answer:

$45

$22

$23

Explanation:

I don't know how to exactly explain it all I can say is by reading and solving.

Answer 2

Answer:

Revenue: $45

Production Cost: $22

Profit: $23

Explanation:

Revenue is the money received from selling the product before costs are deducted. So Revenue would be $45

Ed Production cost include the following:

Cost of Materials for flower arrangement = $5

Labor cost = $12

Additional Costs = $5

Total Production Cost = $5+$12+$5 = $22

Ed profit on each flower arrangement will be The revenues minus costs:

$45 - $22 = $23