Question 5 Not yet answered Points out of 1 In the spreadsheet below, there is d

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Question 5 Not yet answered Points out of 1 In the spreadsheet below, there is data on the price, demand, quantity produced, and cost for an item. There are also different "what if" values that can help a manager to calculate costs and revenue with variability in demand. From the "what if" values, calculate the total profit when the demand is 20,000 Flag question Profit Model What-IfDemand Values 20,000 0,000 5,000 0,000 5,000 ata Unit Price (S) nit Cost (S Fixed Cost (S) 50 emand uantity Produced 550,000 0,000 ,000 10 Select one: O a. $825,000 O b. $1,000,000 O c. $1,100,000 O d. ($925,000)

Explanation / Answer

here we have to find profit when demand value = 20,000

here unit cost = $25

if demand = 20,000

quanitity produced = 55000

total variabe cost = 55000*25= $1,375,000

fixed cost = $550,000

hence total cost = 550000+1375000=1,925,000

unit price = 50

so total sales = 50^20000= 1,000,000

hence profit = 1000000-1925000 = -$925,000

Thanks

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