Question

Suppose carl's candies sells 100 boxes of candy for $5 each. the total fixed cost of the 100 boxes is 100 and the average variable cost of the 100 boxes is 1.50 per box

Answer 1

Answer:

$ 250

Step-by-step explanation:

given,

number of boxes = 100 boxes

cost of candy = $ 5 each

Total fixed cost of the 100 boxes = $ 100

variable cost of 100 boxes = $ 1.5 per box

total profit of Carl's = ?

Variable cost of 100 boxes = 100 x $ 1.5

                                            = $ 150

fixed cost = $ 100

Total cost = fixed cost + variable cost

                = $ 100 + $ 150 = $ 250

Selling price = $ 5 x 100

                     = $ 500

total profit of Carl's  = Selling price - Cost price

                                 = $ 500 - $ 250

                                 = $ 250

total profit of Carl's is equal to $ 250.