Respuesta :
The entire amount of money earned through the sale of goods and services is revenue. The profits on a single flower arrangement are $23.
What is revenue?
The entire amount of money earned through the sale of goods and services connected to the business's principal operations is referred to as revenue.
The following information is given to us,
- Ed's 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.
1. We know that the revenue is the selling price of an item, therefore, Ed's revenue from selling his most popular arrangement is $45n, where n is the number of flower arrangements sold by Ed.
2. The cost of production, also known as the cost price or production expenses, is computed by summing all of a manufacturing unit's direct and indirect costs. Therefore, the total production cost of one flower arrangement is,
Total production cost = Cost of material + Cost of labour(1 hour) + Additional Cost
Total production cost = $5 + $12 + $5 = $22
3. The profit on one flower arrangement is the difference in the revenue generated from a single flower arrangement and the total production cost of a single flower arrangement. Therefore,
Profit = Revenue - Total production cost
Profit = $45 - $22 = $23
Hence, the profit on a single flower arrangement is $23.
Learn more about Revenue:
https://brainly.com/question/25402993
Answer:
the correct answers to your questions are
Ed's revenue from selling his most popular arrangement is
✔ $45
.
Ed's total production costs for one flower arrangement are
✔ $22
.
Ed's profit on each arrangement is
✔ $23
.
Explanation:
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