How much would be the Total Revenues if the company had purchased 3 towers at $125,000 each and then sold each tower at $150,000 each for cash?
Understand the Problem
The question is asking how much total revenue would be generated from selling three towers that were purchased at $125,000 each and sold at $150,000 each. To find this, we will calculate the total revenue by multiplying the selling price per tower by the number of towers sold.
Answer
The total revenues would be $450,000.
Answer for screen readers
The total revenues generated from selling the three towers would be $450,000.
Steps to Solve
- Identify Number of Towers and Selling Price
The problem states that the company sold 3 towers at $150,000 each.
- Calculate Total Revenue from Sales
To find the total revenue, multiply the selling price by the number of towers sold:
[ \text{Total Revenue} = \text{Number of Towers} \times \text{Selling Price per Tower} ]
So, the equation becomes: [ \text{Total Revenue} = 3 \times 150,000 ]
- Perform the Multiplication
Now, calculate the total revenue: [ \text{Total Revenue} = 3 \times 150,000 = 450,000 ]
The total revenues generated from selling the three towers would be $450,000.
More Information
Total revenue represents the total income generated from the sale of goods or services. In this case, selling the three towers at a higher price than the purchase price results in revenue, which is an important measure for any business.
Tips
- Confusing total revenue with profit. Total revenue is the total brought in from sales, whereas profit considers costs.
- Incorrectly calculating the number of items sold or their price. Always double-check the figures given in the problem.
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