Question

Scenario:Ed is the proud new owner of a flower shop. His 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.

Use the information presented in the scenario and the drop-down menus to answer these questions.

Ed's revenue from selling his most popular arrangement is .

Ed's total production costs for one flower arrangement are .

Ed's profit on each arrangement is

Answer 1

Answer:

Revenue: $45

Production Cost: $22

Profit: $23

Explanation:

Revenue is the money received from selling the product before costs are deducted. So Revenue would be $45

Ed Production cost include the following:

Cost of Materials for flower arrangement = $5

Labor cost = $12

Additional Costs = $5

Total Production Cost = $5+$12+$5 = $22

Ed profit on each flower arrangement will be The revenues minus costs:

$45 - $22 = $23

Answer 2

The revenue is $45, the total production cost $22, and the profit is $23 from the sale of the most popular arrangement.

What are revenue, cost, and profit?

Revenue is the amount received from the sale of a product. It is the selling price of the product.

Cost is the amount incurred on the production of a product. It is the total expense of production.

Profit is the earning from a product. It is calculated as the excess of revenue over costs.

The revenue of Ed from the most popular arrangement is $45

The cost can be calculated as follows:

$\begin{aligned} \rm Cost &=\rm Material \:Cost + Employee\:expenses+ Additional\:Cost\\\\&= \ 5 + \ 12 + \ 5\\\\&= \ 22\end$

Therefore the profit will be:

$\begin{aligned}\rm Profit &=\rm Revenue - Cost\\\\&= \ 45 -\ 22\\\\&= \ 23\end$

Therefore the correct answers are:

$\rm Revenue = \ 45\\Cost =\ 22\\Profit =\ 23$

Learn more about revenue, cost, and profit here:

https://brainly.com/question/12416756