6. The $$ O $$ \& $$ O $$ Manufacturing Company believes they can sell 5,000 steel buildings for $$ \$ 1,500 $$ each. If the variable costs are $$ \$ 1,225 $$ per building and the fixed costs are $$ \$ 1,000,000 $$, (A) would they make a profit and (B) if so, how much?

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To determine whether the $$ O \& O $$ Manufacturing Company will make a profit and, if so, how much, we'll analyze the revenue and costs involved.

### Given Data:
- **Number of buildings sold:** 5,000
- **Selling price per building:** \$1,500
- **Variable cost per building:** \$1,225
- **Fixed costs:** \$1,000,000

### (A) **Will they make a profit?**

To find out if the company will make a profit, we need to compare the **total revenue** with the **total costs**.

1. **Total Revenue (TR):**
   $$
   TR = \text{Number of buildings} \times \text{Selling price per building} = 5,000 \times \$1,500 = \$7,500,000
   $$

2. **Total Variable Costs (TVC):**
   $$
   TVC = \text{Number of buildings} \times \text{Variable cost per building} = 5,000 \times \$1,225 = \$6,125,000
   $$

3. **Total Costs (TC):**
   $$
   TC = TVC + \text{Fixed costs} = \$6,125,000 + \$1,000,000 = \$7,125,000
   $$

4. **Profit (or Loss):**
   $$
   \text{Profit} = TR - TC = \$7,500,000 - \$7,125,000 = \$375,000
   $$

Since the total revenue (\$7,500,000) exceeds the total costs (\$7,125,000), the company **will make a profit**.

### (B) **How much profit will they make?**

As calculated above, the **profit** is:
$$
\$375,000
$$

---

**Summary:**
- **(A)** Yes, the company will make a profit.
- **(B)** The profit amount is \$375,000.
The company will make a profit of \$375,000.

The & Manufacturing Company believes they can
sell 5,000 steel buildings for each. If the variable
costs are per building and the fixed costs are
, (A) would they make a profit and (B) if so,
how much?

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The & Manufacturing Company believes they can sell 5,000 steel buildings for each. If the variable costs are per building and the fixed costs are , (A) would they make a profit and (B) if so, how much?