Scenario:Ed is the proud new owner of a flower shop. His most popular arrangement sells for $45. Ed has determined that the cost of materials for this flower arrangement is $5. Ed has also determined that it takes his employee about one hour to complete one arrangement, and this employee is paid $12 per hour. Additional costs include $5 per arrangement to cover such expenses as rent and electricity.

Use the information presented in the scenario and the drop-down menus to answer these questions.

Ed's revenue from selling his most popular arrangement is.

Ed's total production costs for one flower arrangement are.

Ed's profit on each arrangement is

Question

Parker Morgan

Business

3 June, 07:57

Scenario:Ed is the proud new owner of a flower shop. His most popular arrangement sells for $45. Ed has determined that the cost of materials for this flower arrangement is $5. Ed has also determined that it takes his employee about one hour to complete one arrangement, and this employee is paid $12 per hour. Additional costs include $5 per arrangement to cover such expenses as rent and electricity.

Use the information presented in the scenario and the drop-down menus to answer these questions.

Ed's revenue from selling his most popular arrangement is.

Ed's total production costs for one flower arrangement are.

Ed's profit on each arrangement is

+1

Answers (1)

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Yasmine Moses · Answer 1

Revenue: $45

Production Cost: $22

Profit: $23

Explanation:

Revenue is the money received from selling the product before costs are deducted. So Revenue would be $45

Ed Production cost include the following:

Cost of Materials for flower arrangement = $5

Labor cost = $12

Additional Costs = $5

Total Production Cost = $5+$12+$5 = $22

Ed profit on each flower arrangement will be The revenues minus costs:

$45 - $22 = $23