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Chapter 3: Problem 5

If average cost is \(\$ 423,\) price is \(\$ 399\), and the number of units sold is \(23,\) what is the loss?

Short Answer

Expert verified
The loss is the difference between the total cost of \( 423 \times 23 \) and the total revenue earned \( 399 \times 23 \)

Step by step solution

01

Calculate the Total Cost

First, calculate the total cost, which is the average cost multiplied by the number of units. Using the values given, we get: \(Total Cost = 423 \times 23\)
02

Calculate the Total Revenue

The second step is to calculate the total revenue, which is the price multiplied by the number of units sold. Using the values given, we can see: \(Total Revenue = 399 \times 23\)
03

Compute the Loss

Finally, we calculate the loss, which is the difference between the total cost and total revenue. Therefore, \(Loss = Total Cost - Total Revenue\)

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