Profit

Happy Hounds sell dog beds. This year they sold their dog beds for $50. Their fixed costs were $22,000 and their variable costs were $20 per bed. Calculate the total profit if 1,500 dog beds were made and sold.

Timber is a small furniture repair workshop. They specialise in hand carving techniques. The price of a repair is $500. In February, their fixed costs were $6,000 and their variable costs were $200 per repair. Calculate the total profit if 40 repairs were completed.

Concrete Computers sells a range of computers and computer accessories. Their selling price is $500 per computer. In January, their fixed costs were $120,000 and their variable costs were $300. Calculate the total profit if 800 computers were sold.

What is a fixed cost?

• Costs that do not change

• Costs that may change depending on output

• The total cost of running a business

• The cost to hire employees

What is a variable cost?

• Costs that do not change

• Costs that may change depending on output

• The total cost of running a business

• Cost of subscription services

Rent for a business location is what type of cost?

• Fixed cost

• Variable cost

Cost of supplies is what type of cost?

• Fixed cost

• Variable cost

Insurance for your business is what type of cost?

• Fixed cost

• Variable cost

Adventure Kids is an outdoor adventure company for children during the school breaks. Last year, they charged $250 per child. Their annual fixed costs were $156,000 and their variable costs were $190 per child. Calculate the total profit if 6,000 children attended the summer camp.

Prints sell a range of t-shirts with images of retro films. They sell their t-shirts for $35 each. This year, their annual fixed costs were $96,000 and variable costs per t-shirt were $20. Calculate the total profit if 7,500 t-shirts were made and sold.