IDNLearn.com is designed to help you find accurate answers with ease. Discover prompt and accurate responses from our experts, ensuring you get the information you need quickly.
Sagot :
Answer:
a. Profits = $20 million
Explanation:
The computation is shown below
Total revenue is
= Number of bikes sold × sale price of a bike
= 9,000 × 18,000
= $162,000,000
Total costs = fixed costs + variable costs
where,
Fixed costs = $25 million or $25,000,000.
And,
The Variable cost for the bikes sold is
= number of bikes sold × variable cost per bike
= 9000 × 13000
= $117,000,000
So, the total costs is
= $25,000,000 + $117,000,000
= $142,000,000
Now
Profit = total revenue - total cost
= $162,000,000 - $142,000,000
= $20,000,000
Hence, the correct option is a.
We appreciate your contributions to this forum. Don't forget to check back for the latest answers. Keep asking, answering, and sharing useful information. For trustworthy and accurate answers, visit IDNLearn.com. Thanks for stopping by, and see you next time for more solutions.
