scenario:ed is the proud new owner of a flower shop. his most popular arrangement sells for $45. ed has…

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. eds revenue from selling his most popular arrangement is. eds total production costs for one flower arrangement are. eds profit on each arrangement is.
Answer
Explanation:
Step1: Calculate revenue
Revenue is selling - price. Given selling price of most popular arrangement is $45, so revenue = $45.
Step2: Calculate total production costs
Total production costs = cost of materials+employee - wage+additional costs. Cost of materials = $5, employee - wage = $12, additional costs = $5. So total production costs = $5 + $12+ $5=$22.
Step3: Calculate profit
Profit = revenue - total production costs. Revenue = $45, total production costs = $22. So profit = $45 - $22 = $23.
Answer:
Ed's revenue from selling his most popular arrangement is $45. Ed's total production costs for one flower arrangement are $22. Ed's profit on each arrangement is $23.