Acme Steel Co. produces 1000 tons of steel. Steel sells for $30 per ton. Acme pays wages of $10,000. Acme buys $15,000 worth of coal,which is needed to produce the steel. Acme pays $2,000 in taxes. Acme's profit is

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Quizplus · Accepted Answer

Total revenue from steel sales = 1000 tons x $30/ton = $30,000
Total cost = wages + cost of coal + taxes = $10,000 + $15,000 + $2,000 = $27,000
Profit = Total revenue - Total cost = $30,000 - $27,000 = $3,000. Therefore, the correct answer is C) $3,000.