Question

Eddie's Electronics sells laptop computers for $ 425 each. At this price, the store sells 325 laptops. Eddie's Electronics incurs a $ 398 cost for each laptop it sells. Assume that this is the store's only cost. Round your answers to the nearest dollar. What is Eddie's Electronics' revenue? $ What is Eddie's Electronics' profit?

Answer 1

Answer:

(a) TR = $138,125

(b)  Profit = $8,775

Explanation:

Profit is nothing but Total revenue (TR) - Total cost (TC).

TR is P × Q.

Price is given to be $425. Quantity is given to be 325 units. Cost per unit is $398.

TR= 425 × 325

TR = $138,125

Total cost = Cost per unit × total units sold.

TC = 398 × 325

TC = $129,350

Profit = $138,125 - $129,350

Profit = $8,775