If revenues are $25 per unit,variable costs are $15 per unit,and fixed costs are $400,what is the operating profit when 100 units are sold?
A)($600)
B)$600
C)($1,900)
D)$2,500

Question

Quizplus · Accepted Answer

To calculate operating profit, we need to subtract total variable costs and fixed costs from total revenues. 
Total variable costs: $15 x 100 = $1,500 
Total revenues: $25 x 100 = $2,500 
Operating profit = Total revenues - Total variable costs - Fixed costs 
Operating profit = $2,500 - $1,500 - $400 = $600 
Therefore, the answer is choice B, which is $600.

If Revenues Are $25 Per Unit,variable Costs Are $15 Per