Answer:
$11,700 and $12,240
Explanation:
According to the scenario, computation of the given data are as follow:-
Total Revenue = No. of Sale Units × Selling Price Per Unit
= 2,000 × $10
= $20,000
In case if the restaurant lease the machine with the higher marginal cost, restaurant owner earned profits
= Total Revenue - Total Cost
where,
Total cost is is Fixed cost + variable cost
Variable Cost = No. of Sale Units × (Marginal Cost + Cost of Ingredients for Each Burger)
= 2,000 × ($1 + $2)
= $6,000
Total Cost = Fixed Cost + Total Variable Cost
= $2,300 + $6,000
= $8,300
And, the total revenue is $20,000
So, the profit earned is
= $20,000 - $8,300
= $11,700
In case if the restaurant lease the machine with the lower marginal cost, restaurant owner earned profits
= Total Revenue - Total Cost
where,
Total cost is Fixed cost + variable cost
Variable Cost = No. of Sale Units × (Marginal Cost + Cost of Ingredients for Each Burger)
= 2,000 × ($0.50 + $2)
= $5,000
Total Cost = Fixed Cost + Total Variable Cost
= $2,760 + $5,000
= $7,760
And, the total revenue is $20,000
So, the earned profit is
= $20,000 - $7,760
= $12,240
