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March 30, 2017

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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.

  • Math-Urgent please - ,

    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.

  • Math-Urgent please - ,

    What about the variable costs of $10 per pound?

  • Math-Urgent please - ,

    I read that as $10/bag and not $10/lb. Disregard my work. Thanks Ms. Sue.

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