Key Concept: Production of Goods, Economic Activity
c) \$1,500,000
[Solution Description]
Calculate the total revenue and total production cost. Subtract the production cost from the revenue to find the gross profit.
Calculation:
$\text{Revenue} = 10,\!000 \, \text{units} \times \$500/\text{unit} = \$5,\!000,\!000$
$\text{Production Cost} = 10,\!000 \, \text{units} \times \$350/\text{unit} = \$3,\!500,\!000$
$\text{Gross Profit} = \text{Revenue} - \text{Production Cost} = \$5,\!000,\!000 - \$3,\!500,\!000 = \$1,\!500,\!000$
The gross profit per month is \$1,500,000.
Your Answer is correct.
c) \$1,500,000
[Solution Description]
Calculate the total revenue and total production cost. Subtract the production cost from the revenue to find the gross profit.
Calculation:
$\text{Revenue} = 10,\!000 \, \text{units} \times \$500/\text{unit} = \$5,\!000,\!000$
$\text{Production Cost} = 10,\!000 \, \text{units} \times \$350/\text{unit} = \$3,\!500,\!000$
$\text{Gross Profit} = \text{Revenue} - \text{Production Cost} = \$5,\!000,\!000 - \$3,\!500,\!000 = \$1,\!500,\!000$
The gross profit per month is \$1,500,000.