Edward Cheezer's Inc.makes and sells frozen four-cheese pizzas,New York-style.The expected selling price is $10 per pizza.The projected variable cost per pizza is $6.The estimated fixed costs per month are $10,000.
-If 6,000 pizzas are sold in a given month and fixed costs increase by $5,000,the overall profit is

Question

Edward Cheezer's Inc.makes and sells frozen four-cheese pizzas,New York-style.The expected selling price is $10 per pizza.The projected variable cost per pizza is $6.The estimated fixed costs per month are $10,000. 
-If 6,000 pizzas are sold in a given month and fixed costs increase by $5,000,the overall profit is

Quizplus · Accepted Answer

The profit is calculated as (Selling Price - Variable Cost) * Quantity - Fixed Costs. Here, ($10 - $6) * 6,000 - ($10,000 + $5,000) = $24,000 - $15,000 = $9,000.