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.Increasing the sales price to $6.00 and having a sales volume of 3,000 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.Increasing the sales price to $6.00 and having a sales volume of 3,000 photo frames would result in:

Quizplus · Accepted Answer

To calculate the profit, first find the total revenue and total costs. Revenue at $6 per frame for 3,000 frames is $18,000. Variable costs at $2 per frame for 3,000 frames is $6,000. Total costs are $6,000 (variable) + $9,000 (fixed) = $15,000. Profit is $18,000 (revenue) - $15,000 (total costs) = $3,000.

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