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Question 12
What is the net profit from selling 6000 units? (A) $500 (B) $1000 (C) $1500 (D) $2000
Step 1
Answer
To determine the net profit from selling 6000 units, we need to know the selling price per unit and the total costs (including fixed and variable costs). The formula for net profit can be expressed as:
Where total revenue is calculated as:
If the respective values for selling price and costs are provided, substitute them into the formulas.
Assuming, for example, we have a selling price of y, the net profit from selling 6000 units would be:
Calculating the net profit then gives:
Then, choose the answer that corresponds to the calculated net profit.
Step 2
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