3.

3 COSTS AND REVENUES WORKSHEET

PRACTICE
1. Costa Dance Studio has rent and electricity costs of $800 and $60 respectively
each month. The dance instructors are paid $25 for each hour of class. The
studio has 8 classes per day, 6 days a week.
Calculate the total costs and total revenue for Costa Dance Studio. (2 marks)

2. Big Red´s Hot dog cart is located in a spot near the financial district. His best-
selling item is the Reddish hot dog, priced at $1.75. He sells about 85 of these
each day. Al works from Monday to Friday at his designated spot.
His costs are as follows:

Hot dogs and toppings $0.45

Rolls $0.05
City Permit $50 per month
Cart lease $40 per month

Calculate Big Red´s total costs per month.

Calculate Big Red´s total profit per month.
Draw a costs and revenues chart showing the levels per month if he sells the
expected 85 per day, and if he increases sales to 100 per day.

3. Aluminum Window Corp (AWC) is a small aluminum window manufacturing

company. Aluminum is popular in construction due to its environment and user-
friendly nature. AWC produces and sells 120 industry standard windows per
week.
The manufacturing process includes submerging the frames in an anodizing* tank, and
then washing them with water before cutting them to size.
Some of the costs in the process are as follows:

Glass sheet per window $8.90 per window

Chemical for anodizing $150 per tank (use for every 100 windows)
Window clips $3.99 per window

1
Aluminum frame sections $120 per window
Rent of production plant $700 per month
Utilities $300 per month
Installation costs $25 per window

AWC charges $380 dollars per finished installed window on local construction sites.

Calculate AWC total costs per month.

Calculate AWC total revenue per month.
Calculate AWC total profit per month.