Question

South Avenue Publishing produces self-help books. The company’s profit is the

A.money the company earns after paying all of its production costs.
B.paper, binding, and other supplies the company purchases.
C.total amount the company receives from the sale of its books.
D.amount of money the company earns from selling a single book.

Answer 1

Hello!

The answer is: A.money the company earns after paying all of its production costs.

Why?

We need to know that profits come after a company/industry pays all of its productions costs. Productions costs are all of the costs that the company must assume to produce a good or service. For example, materials, employees, rents, among other costs.

We can define the company's profits using the following formula:

$Profit=Em-Pc$

Where:

Profit = Financial advantage

Em= Earned money

Pc= Production costs

Have a nice day!

Answer 2

Answer:

A. money the company earns after paying all of its production costs.

Explanation:

It is essential to know that profits arise after an individual, company, or an organization has paid all the production costs. Therefore productions costs are the expenses that are incurred while producing the products. To calculate profits, all expenses should be subtracted from the total production value.

Therefore the south avenue company earns its profits after it has a period for all its production costs that cater to general expenses incurred during the period. Therefore profits are realized after every expenses has been subtracted.