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2 answers:
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Answer:
Profit is Gh120000
Explanation:
Given that sales = Gh500,000, variable cost = Gh200,000, break-even sales = Gh300,000. Let x be the fixed cost.
To find the profit, we have to first find the fixed cost so as to get the total cost. The fixed cost can be gotten using the formula below:
Therefore fixed cost = Gh180000
Total cost = Fixed cost + Variable cost = Gh180000 + Gh200000 = Gh380000
Profit = Sales - Total cost = Gh500000 - Gh380000
Profit = Gh120000
