QUESTION 36 A local pet store, Roscoe\'s Rascals, which has concentrated on sell
ID: 1158772 • Letter: Q
Question
QUESTION 36 A local pet store, Roscoe's Rascals, which has concentrated on selling puppies, is considering adding a line of pet food. A contractor estimates that it will cost $8,000 to convert some storage space into a retail area for the food. Roscoe's Rascals will purchase the special pet food for $12 and sell it for S28. Marketing rescarch indicates that the store will sell 1,000 bags. Find the total revenue from the sa of specialty pet food. QUESTION 37 A local pet store, Roscoe's Rascals, which has concentrated on selling puppies, is considering adding a line of pet food. A contractor estimates that it will cost $8,000 to convert some storage space into a retail area for the food. Roscoe's Rascals will purchase the specialty pet food for $12 and sell it for $28. Marketing research iddicates that the store will sell 1,000 bags. Find the total cost of the sales of specialty pet food.Explanation / Answer
Ans:
36) Total revenue = 1000 * $28
= $28000
Total revenue = selling price * No of units sold
= $28 * 1000
= $28000
37) Total cost = Fixed cost + Variable cost
= $8000 + ($12 * 1000)
= $8000 + $12000
= $20,000