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# An online merchant sells wine for \$20 for an individual bottle or \$220

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Re: An online merchant sells wine for \$20 for an individual bottle or \$220 [#permalink]
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Bunuel wrote:
An online merchant sells wine for \$20 for an individual bottle or \$220 for a case of 12. Either way, the merchant’s cost for the wine is \$10 per bottle. Shipping costs the merchant \$5 for a bottle and \$40 for a case. If 12 cases and 60 individual bottles were sold, and there were no other revenue or expenses, the merchant’s profit was equal to which of the following?

(A) \$780
(B) \$1,020
(C) \$2,160
(D) \$2,640
(E) \$3,840

Solution:

The total revenue of 12 cases and 60 individual bottles of wine is:

12 x 220 + 60 x 20 = 2640 + 1200 = \$3840

The total cost of these cases and individual bottles of wine (not including the shipping cost) is:

(12 x 12 + 60) x 10 = 204 x 10 = \$2040

Since the shipping cost is 12 x 40 + 60 x 5 = 480 + 300 = \$780, the profit is:

3840 - (2040 + 780) = 3840 - 2820 = \$1020