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Difficulty:   5% (low)

Question Stats: 96% (01:25) correct 4% (01:36) wrong based on 812 sessions

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Company C produces toy trucks at a cost of $5.00 each for the first 100 trucks and$3.50 for each additional truck. If 500 toy trucks were produced by Company C and sold for $10.00 each, what was Company C’s gross profit? (A)$2,250
(B) $2,500 (C)$3,100
(D) $3,250 (E)$3,500
Manager  Joined: 18 Jan 2010
Posts: 238
Re: Company C produces toy trucks at a cost of $5.00 each for the first 10 [#permalink] ### Show Tags Cost of 500 trucks: (100 * 5 ) + (400 * 3.5) = 500 + 1400 =$ 1900

Revenue : 500 * 10 = $5000 Profit: 5000 - 1900 =$ 3100

Option C is correct
Manager  S
Status: On a 600-long battle
Joined: 22 Apr 2016
Posts: 136
Location: Hungary
Schools: Erasmus '19
GMAT 1: 410 Q18 V27 GMAT 2: 490 Q35 V23
Re: Company C produces toy trucks at a cost of $5.00 each for the first 10 [#permalink] ### Show Tags 2 nalinnair wrote: Company C produces toy trucks at a cost of$5.00 each for the first 100 trucks and $3.50 for each additional truck. If 500 toy trucks were produced by Company C and sold for$10.00 each, what was Company C’s gross profit?

(A) $2,250 (B)$2,500
(C) $3,100 (D)$3,250
(E) $3,500 Cost for each of the first 100 trucks: 5 Cost for each of the 400 trucks = 3.5 Total Trucks produced = 500 Selling price of each truck = 10 Profit = Revenue - Total Cost $$Total\quad Cost\quad =\quad 100\ast 5+400\ast 3.5\\ Total\quad Cost\quad =\quad 100\left( 5+4\ast 3.5 \right) \\ Total\quad Cost\quad =\quad 100\left( 19 \right) \\ Total\quad Cost\quad =\quad 1900$$ $$Revenue\quad =\quad 500\ast 10\quad =\quad 5000$$ $$Total\quad Gross\quad Profit\quad =\quad Revenue-Total\quad Cost\\ Total\quad Gross\quad Profit\quad =\quad 5000\quad -\quad 1900\quad =\quad 3100$$ _________________ "When the going gets tough, the tough gets going!" |Welcoming tips/suggestions/advices (you name it) to help me achieve a 600| Manager  G Joined: 06 Sep 2018 Posts: 170 Location: Pakistan Concentration: Finance, Operations GPA: 2.87 WE: Engineering (Other) Re: Company C produces toy trucks at a cost of$5.00 each for the first 10  [#permalink]

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total cost=100*5 + 400*3.5 = 500+1400=1900
Revenue= 500*10 = 5000
so
profit= 5000-1900 = 3100 Re: Company C produces toy trucks at a cost of $5.00 each for the first 10 [#permalink] 06 Sep 2018, 09:01 Display posts from previous: Sort by # Company C produces toy trucks at a cost of$5.00 each for the first 10  