Calculate a firm's profit using the following information: the unit price (P) for a product is $40; the quantity sold (Q) is 2,000; the fixed cost (FC) is $50,000; and the variable cost (VC) is $20,000.
A) $10,000
B) $50,000
C) $110,000
D) $150,000
E) cannot be determined with the information provided

Question

Quizplus · Accepted Answer

Profit = (P * Q) - (FC + VC) = ($40 * 2,000) - ($50,000 + $20,000) = $80,000 - $70,000 = $10,000

Calculate a Firm's Profit Using the Following Information: the Unit