If revenues are $20 per unit,variable costs are $10 per unit,and fixed costs are $150,what is the operating profit when 100 units are sold?
A)$ 850
B)$ 1,740
C)($16,000)
D)($ 140)

Question

Quizplus · Accepted Answer

Operating profit is calculated as (Revenue per unit - Variable cost per unit) * Number of units sold - Fixed costs. Here, it is ($20 - $10) * 100 - $150 = $1,000 - $150 = $850.

If Revenues Are $20 Per Unit,variable Costs Are $10 Per