The total cost for producing units of a commodity is $4.8 million, and the revenue generated by the sale of units is $7.4 million. What is the profit on units of the commodity?
A) $12.2 million
B) $1.5 million
C) $2.6 million
D) $4.8 million
E) $7.4 million

Question

The total cost for producing  units of a commodity is $4.8 million, and the revenue generated by the sale of  units is $7.4 million. What is the profit on  units of the commodity?
A) $12.2 million 
B) $1.5 million 
C) $2.6 million 
D) $4.8 million 
E) $7.4 million

Quizplus · Accepted Answer

Profit = Revenue - Cost 
Profit on 11eaa894_64bf_0e2c_a158_b3cc77ddf5c3_TB6775_11 units = $7.4 million - $4.8 million 
Profit on 11eaa894_64bf_0e2c_a158_b3cc77ddf5c3_TB6775_11 units = $2.6 million

Therefore, the answer is (C) $2.6 million.

The Total Cost for Producing Units of a Commodity