Answer to Question #324309 in Economics for Bea

Question

Kelly is the owner of a small gourmet burger food truck. She sells her burgers during lunch in the parking lot of the Menlyn Maine shopping centre. Her expenses are recorded as follow:

Sales price per burger: R35 per burger

Variable cost per burger: R12 per burger

Total fixed cost per annum: R42 000

If Kelly were to sell 27 900 burgers what would her profit be?

Select one:

a.

R943 500

b.

R576 600

c.

R599 700

d.

Kelly would not make a profit

Answer 1

Her profit would be 27900×(35-12)-42000=599700

c.

R599 700