Question

the table shows the estimated sales for two different prices of bags of chips. calculate the profit per bag for the bags sold at $3 each.

sales price	estimated sales	fixed cost	fixed cost per unit	variable cost	total cost
$3.00	500,000 bags	$400,000	$0.80	$0.40	$1.20

$?

Explanation:

Step1: Recall profit formula

Profit per unit = Sales Price - Total Cost per unit.

Step2: Identify values for $3 price

Sales Price = $3.00, Total Cost per unit = $1.20.

Step3: Calculate profit

Profit = $3.00 - $1.20 = $1.80.

Answer:

1.80