Posted by janay1978 on Saturday, July 11, 2009 at 9:33pm.
Healthy food Inc sells 50lb bags of grapes to the military for $10 a bag.
The fixed costs of this operation are $80,000 while the variable costs of the grapes are $10 per lb.
Calculate the profit or loss on 12,000 bags and on 25,000 bags. Can you please walk me through on how to come to the answer. I am so confused.

MathUrgent please  DrBob222, Saturday, July 11, 2009 at 9:56pm
How much will 12,000 bags of grapes bring in sales? 12,000 bags x $10/bag = $120,000
The profit is the sales  fixed costs = 120.000  80,000 = $40,000 profit.
Do the same for the 25,000 bags. Post your work and detail exactly what you don't understand if you get stuck.

MathUrgent please  Ms. Sue, Saturday, July 11, 2009 at 10:30pm
What about the variable costs of $10 per pound?

MathUrgent please  DrBob222, Saturday, July 11, 2009 at 11:13pm
I read that as $10/bag and not $10/lb. Disregard my work. Thanks Ms. Sue.
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