Question

Mr. Warner buys 10 cartons of cigarettes a day for $50 each and sells them at a higher price. If Mr. Warner earns $450 in profit a day, what is his total revenue?

Answer 1

Answer:

Total revenue = $950

Explanation:

Total revenue is the total income made from the sales of goods or services. It can be determined in any of the following ways:

1. Total revenue = Unit price × Units product sold
2. Total revenue = Total cost of cost of sold + Profit

Note that total cost = (unit cost × units purchased) + any other expenses.

So we can apply the above to our question. Specifically, the second relationship is okay.

Total revenue = (10 × $50) + $450= $950