Kevin and Sarah’s friend Ally wants in on the entrepreneurial action and decides

Question

Kevin and Sarah’s friend Ally wants in on the entrepreneurial action and decides to sell her world famous Mega-Death Choco Cookies at fairs and church carnivals. She has learned the following calculations for gross margins: Gross margin (as a percent) = (Selling price – costs) / Selling price Gross profit in dollars = selling price – costs At the county fair she had the following results: Price for a dozen cookies = $12 Costs for ingredients = $3 Booth and table cloth = $150 Other fixed expenses = $200 In two days, she sold 214 dozen cookies (these are really good cookies)

What is the gross profit for all the cookies she sold?

Question 16 options:

1)

$1126

2)

$1960

3)

$2568

4)

$1926

5)

$642

1)

$1126

2)

$1960

3)

$2568

4)

$1926

5)

$642

Explanation / Answer

Gross Profit = Selling Price - Costs

Selling Price = (214*12) = 2568 $

Costs = Fixed costs + Variable costs = (214*3) = 642 $

Gross Profit = 2568 - 642= 1926 $

Related Questions

Navigate

• Browse (All)
• Browse K
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.