Question

last year aphrodite had fixed costs of 180.000 and their average selling price was 80. variable costs were 2/5ths of the average selling price and the business sold 8.000 items. calculate how much profit Aphrodite made last year

Answer 1

Answer:

Aphrodite made 204 in profits

Explanation:

profits= Sales - total costs

1. Calculating sales: price X units( 80X8.00)= 640.00

       2. Calculating total  costs: fixed costs+ variable costs

      variable cost per unit (2/5x80)=32

      total variable: costs per x total units(32X8.0)= 256

      total cost : fixed cost + variable costs( 180+256)=436

 

      3.  Calculating profits: 640-436=204

Aphrodite made 204 profits