The owner of a greenhouse and nursery is considering whether to spend $12,000 to acquire the licensing rights to grow a new variety of rose bush,which she could then sell for $8 each.Variable costs would be $5 per rosebush. What would the profit be if she were to produce and sell 5,000 rose bushes?

Question

Quizplus · Accepted Answer

To find the profit, we need to calculate the total revenue and subtract the total cost.

Total revenue: 
$8 per rosebush x 5,000 rose bushes = $40,000

Total cost: 
$12,000 for licensing + $5 per rose bush x 5,000 rose bushes = $37,000

Profit: 
$40,000 - $37,000 = $3,000

Therefore, the best choice is B.

The Owner of a Greenhouse and Nursery Is Considering Whether