Question

Bubba is a shrimp fisherman who catches 4,000 pounds of shrimp per year. He can sell the shrimp for $5 per pound. His average total cost of catching shrimp is $3 per pound. Bubba’s annual total revenue is_______. a. $12,000. b. $32,000. c. $20,000. d. $8,000.

Answer 1

Answer:

Bubba’s annual total revenue is c. $20,000

Explanation:

Revenue is the total amount that comes from sales, regardless of cost.

Bubba catches 4,000 pounds and sell them for $5 per pound, so the total amount (revenue) he receives from selling them is 4,000 * 5 = $20,000

Note: The information about the $3 cost is not necessary to calculate revenue