D’Angelo’s Pizza is planning to produce small square pizzas. It will cost them $2.00 to make each pizza, and the company will sell them for $5.00 each. Express the profit earned as a function of the number of pizzas sold. Think: y=mx+b

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Gross profit formula= 3x

x= number of units sold

Step-by-step explanation:

Giving the following information:

Unitary variable cost= $2

Selling price per unit= $5

To calculate the profit earned, we need to use the unitary contribution margin formula. The contribution margin is a product's price minus all associated variable costs (sales- variable costs), resulting in the incremental profit earned for each unit sold.

Unitary contribution margin= 5 - 2 = 3

Now, the profit formula:

Gross profit formula= number of units*unitary contribution margin

Gross profit formula= 3x

x= number of units sold

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