Mr. Warner buys 10 cartons of cigarettes a day for $50 each and sells them at a higher price. If Mr. Warner earns $450 in profit a day, what is his total revenue?

Total revenue = $950

Explanation:

Total revenue is the total income made from the sales of goods or services. It can be determined in any of the following ways:

Total revenue = Unit price * Units product sold Total revenue = Total cost of cost of sold + Profit

Note that total cost = (unit cost * units purchased) + any other expenses.

So we can apply the above to our question. Specifically, the second relationship is okay.

Total revenue = (10 * $50) + $450 = $950