In: Accounting
A firm has sold 55,555 bicycles in 2020 that has variable cost of $199.55 for $299.99 each. The company's fixed cost for the year was $3,000,000. Show your work here below. To find Profit, compute the following first.
1. Total Variable Cost (TVC) ______
2. Total Cost (TC) _____
3. Total Revenue (TR) ______
4. Profit = ____
Given Information
No of bicycles sold = 55,555
Selling price per bicycle = $299.99
Variable Cost per bicycle = $199.55
Total Fixed Cost = $3,000,000
(1)
Total Variable Cost (TVC) = No of bicycles sold*Variable Cost per bicycle
= 55555*199.55
= $11,086,000
(2)
Total Cost = Total Variable Cost + Total Fixed Cost
= 11,086,000 + 3,000,000
= $14,086,000
(3)
Total Revenue (TR) = No of bicycles sold * Selling Price per bicycle
= 55555*299.99
= $16,665,944
(4)
Profit = Total Revenue - Total Cost
=16,665,944 - 14,086,000
= $2,579,944
(1) Total Variable Cost (TVC) is $11,086,000
(2) Total Cost is $14,086,000
(3) Total Revenue (TR) is $16,665,944
(4) Profit is $2,579,944