Lopez Inc.sells 400 watches at $59 per watch and has variable costs of $26 per watch and fixed costs of $4,000,what is the projected profit?

Question

Quizplus · Accepted Answer

The projected profit can be calculated as follows: Total Revenue - Total Costs = Profit. Total Revenue = 400 watches * $59 = $23,600. Total Variable Costs = 400 watches * $26 = $10,400. Total Costs = Total Variable Costs + Fixed Costs = $10,400 + $4,000 = $14,400. Therefore, Profit = Total Revenue - Total Costs = $23,600 - $14,400 = $9,200.

Lopez IncSells 400 Watches at $59 Per Watch and Has Variable