Francine owns her own widget store. She currently does not have enough money to hire anyone else, so she is the only employee. Francine purchased 1,500 widgets for her inventory at $1.50 per widget. In one month, she sold all her widgets for $3.00 each. That month her rent was $700 and utilities were $200. With just this information, Francine's total profit would be $________.
A) 1,250
B) 550
C) 1,350
D) 1,100
E) -500

Question

Quizplus · Accepted Answer

To calculate the total profit, we need to first calculate the revenue and the expenses:

Revenue = Number of widgets sold × selling price per widget
Revenue = 1,500 widgets × $3.00 per widget
Revenue = $4,500

Expenses = Rent + Utilities + Cost of goods sold
Expenses = $700 + $200 + (1,500 widgets × $1.50 per widget)
Expenses = $700 + $200 + $2,250
Expenses = $3,150

Profit = Revenue - Expenses
Profit = $4,500 - $3,150
Profit = $1,350

Therefore, Francine's total profit would be $1,350 (Choice C).

Francine Owns Her Own Widget Store