the table shows the estimated sales for two different prices of bags of chips. calculate the profit per bag…

the table shows the estimated sales for two different prices of bags of chips. calculate the profit per bag for the bags sold at $2 each.\n|sales price|estimated sales|fixed cost|fixed cost per unit|variable cost|total cost|\n|----|----|----|----|----|----|\n|$1.00|700,000 bags|$250,000|$0.16|$0.40|$0.56|\n|$2.00|450,000 bags|$250,000|$0.56|$0.30|$0.86|\n$?

the table shows the estimated sales for two different prices of bags of chips. calculate the profit per bag for the bags sold at $2 each.\n|sales price|estimated sales|fixed cost|fixed cost per unit|variable cost|total cost|\n|----|----|----|----|----|----|\n|$1.00|700,000 bags|$250,000|$0.16|$0.40|$0.56|\n|$2.00|450,000 bags|$250,000|$0.56|$0.30|$0.86|\n$?

Answer

Explanation:

Step1: Identify relevant costs for $2 price

Fixed cost per unit = $0.56, Variable cost per unit = $0.80

Step2: Calculate total cost per unit

Total cost per unit = Fixed cost + Variable cost = $0.56 + $0.80 = $1.36

Step3: Compute profit per bag

Profit per bag = Sales price - Total cost per unit = $2.00 - $1.36 = $0.64

Answer:

$0.64