The Reliable Auto Repair Shop has total revenue of $5,000. It has total fixed costs of $700 and total variable costs of $2,500. The Reliable Auto Repair Shop's profit is
A) -$3,200.
B) $1,800.
C) $2,500.
D) $4,300.

Question

Quizplus · Accepted Answer

Profit is calculated as total revenue minus total costs (fixed costs + variable costs). Here, profit = $5,000 - ($700 + $2,500) = $5,000 - $3,200 = $1,800.

The Reliable Auto Repair Shop Has Total Revenue of $5,000