Use the information below to answer the following questions.
Sales Extraordinaire sells one particular photo frame. It estimates that it can sell as many frames as it produces.
$$\begin{array} { l r }
\text { Sales price per unit } & \$ 5.00 \
\text { Variable cost per unit } & \$ 2.00 \
\text { Fixed costs per annum } & \$ 9,000
\end{array}$$
-Refer to the table above.The sale of 5,000 photo frames would result in:

Question

Use the information below to answer the following questions.
Sales Extraordinaire sells one particular photo frame. It estimates that it can sell as many frames as it produces.
 $$\begin{array} { l r } 
\text { Sales price per unit } & \$ 5.00 \
\text { Variable cost per unit } & \$ 2.00 \
\text { Fixed costs per annum } & \$ 9,000
\end{array}$$
-Refer to the table above.The sale of 5,000 photo frames would result in:

Quizplus · Accepted Answer

The profit can be calculated as follows: Profit = (Sales price per unit - Variable cost per unit) * Quantity sold - Fixed costs. Substituting the given values: Profit = ($5.00 - $2.00) * 5,000 - $9,000 = $3.00 * 5,000 - $9,000 = $15,000 - $9,000 = $6,000.

Use the Information Below to Answer the Following Questions -Refer to the Table Above