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8 July, 21:39

A bottle of organic shampoo sells for $7.95. Fixed costs total $9,000 and variable costs per unit are $0.85. Sales are forecast to be 12,000. What is the possible net profit on the total sale?

a) $29,400

b) $76,200

c) $19,200

d) $95,400

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  1. 8 July, 23:34
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    Revenue (without accounting for costs) is 12,000 * $7.95 = $95,400.

    There is a fixed cost of $9,000 as well as cost of $0.85 per unit.

    Total costs are $9,000 + $0.85*12,000 = $19,200.

    Net profit is the revenue minus the costs.

    Net profit = $95,400 - $19,200 = $76,200
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