Question

A restaurant prepares and sells 150 tacos at a market price of $3.50 a taco. The average cost is $1.00 a taco. How much profit did the restaurant make

Answer 1

Answer:

$375

Explanation:

Profit = Total revenue - total cost

Total revenue = price x quantity sold = 150 x $3.50 = $525

Total cost = average cost x quantity = $1 × 150 = $150

$525 - $150 = $375