Calculate the quarterly profit if 10,000 soccer balls sold for $9 each. The balls cost the store $5 each. The expense of running the store was $25,000 during that quarter.

Answer 1

Hey Sameera B,

The quarterly profit will be $15,000

Please see the breakdown below

Revenue: 10,000 x $9 = $90,000

Variable costs: 10,000 x $5 = $50,000

Contribution margin: $90,000 - $50,000 = $40,000

Fixed costs: $25,000

Operating profit: $40,000 - $25,000 = $15,000