Suppose Bev's Bags makes large handbags and small handbags.They sold 70,000 large bags for $45 each and 25,000 small bags for $15 each.If the company had total costs of $2,000,000,what was the profit for this company?

Question

Quizplus · Accepted Answer

Revenue from large bags = 70,000 x $45 = $3,150,000 
Revenue from small bags = 25,000 x $15 = $375,000 
Total revenue = $3,525,000

Total costs = $2,000,000

Profit = Total revenue - Total costs 
Profit = $3,525,000 - $2,000,000 = $1,525,000

Therefore, the profit for this company is $1,525,000, which is option A.

Suppose Bev's Bags Makes Large Handbags and Small Handbags