The management at Fries,a potato chips manufacturer,is calculating their quarterly profits.According to the official data,the firm has sold 200,000 units of their chips priced at $2 per unit for the quarter.The firm had spent $100,000 on production,processing and other costs.The profit made by Fries for the quarter is:
A)$400,000.
B)$300,000.
C)$200,000.
D)$100,000.

Question

Quizplus · Accepted Answer

The revenue earned by Fries for the quarter is:
200,000 units x $2 per unit = $400,000

The total cost incurred by the company is:
$100,000

Therefore, the profit made by Fries for the quarter is:
$400,000 - $100,000 = $300,000

Hence, the correct answer is option B.

The Management at Fries,a Potato Chips Manufacturer,is Calculating Their Quarterly