Answer:
$1525000
Explanation:
Given: Selling price of each large bag is $45
Quantity of large bags= 70000
Selling price of each small bag is $15
Quantity of small bags= 25000.
Total cost to the company is $2000000.
First calculating total revenue generated by the company.
Revenue= [tex]Selling\ price\times quantity[/tex]
⇒ Revenue= [tex]( 70000\times \$45 + 25000\times \$ 15)[/tex]
⇒ Revenue= [tex]\$ 3150000+ \$375000[/tex]
∴ Revenue= $3525000
Now, computing profit for the company.
Profit= [tex]Revenue- cost[/tex]
⇒ Profit= [tex]\$ 3525000- \$ 2000000[/tex]
∴ Profit= [tex]\$ 1525000[/tex]
Hence, $1525000 is the profit for the company.
