structions chapters 17 and 18 and view the videos before taking this quiz. you w

Question

structions chapters 17 and 18 and view the videos before taking this quiz. you will have ts, a maximum of 40 minutes per attempt. I will take the highest score of your ots. Question 1 pts The Chocolate Company's fixed costs for the year are estimated at $380349. Its product sells for $251. The variable cost per unit is $199. Sales for the coming year are expected to reach $1739670. What is the expected profit in dollars? Round up to the second decimal point. Do NOT enter dollar or percent signs. s Previous Next 20

Explanation / Answer

First, let’s calculate the number of products that is expected to be sold.

Number of products = Total revenue / Unit selling price

Number of products = 1739670 / 251 = 6930.9 or 6931 units

Now the total cost of producing these units is

Total cost = fixed cost + variable cost * number of units

Total cost = 380349 + 199*6931 = 1759618

Profit is denoted by

Profit = Total revenue – Total cost

Profit = 1739670 – 1759618 = -19948 or a loss of $19948

You should enter -19948

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