Calculate a firm's total profit using the following information: the unit price (P) for a product is $40; the quantity sold (Q) is 2,000; the fixed cost (FC) is $50,000; and the variable cost (VC) is $20,000.
e. cannot be determined with the information provided
profit equation = Total revenue ? Total cost or [(Unit price × Quantity sold) ? (Fixed cost + Variable cost)].
Profit = (TR ? TC) = [(P × Q) ? (FC + VC)] = [($40 × 2,000) ? ($50,000 + $20,000)] = $10,000.