Math  /  Data & Statistics

QuestionThe table shows the estimated sales for two different prices of bags of chips. Calculate the profit per bag for the bags sold at \2 each. \begin{tabular}{|r|r|r|r|r|r|} \hline Sales Price & Estimated Sales & Fixed Cost & Fixed Cost per Unit & Variable Cost & Total Cost \\ \hline\2.00 2.00 & 800,000 bags & $400,000\$ 400,000 & $0.50\$ 0.50 & $0.40\$ 0.40 & $0.90\$ 0.90 \\ \hline$3.00\$ 3.00 & 500,000 bags & $400,000\$ 400,000 & $0.80\$ 0.80 & $0.40\$ 0.40 & $1.20\$ 1.20 \\ \hline \end{tabular} $[?]\$[?]

Studdy Solution
Calculate the profit per bag by subtracting the total cost from the total revenue and then dividing by the number of bags sold:
Total Profit=$1,600,000$720,000=$880,000\text{Total Profit} = \$1,600,000 - \$720,000 = \$880,000
Profit per Bag=$880,000800,000=$1.10\text{Profit per Bag} = \frac{\$880,000}{800,000} = \$1.10
The profit per bag for the bags sold at $2 each is:
$1.10 \boxed{\$1.10}

View Full Solution - Free
Was this helpful?

Studdy solves anything!

banner

Start learning now

Download Studdy AI Tutor now. Learn with ease and get all help you need to be successful at school.

ParentsInfluencer programContactPolicyTerms
TwitterInstagramFacebookTikTokDiscord