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Re: Company C produces toy trucks at a cost of $5.00 each for the first 10 [#permalink]
1
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total cost=100*5 + 400*3.5 = 500+1400=1900
Revenue= 500*10 = 5000
so
profit= 5000-1900 = 3100

Answer C
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Re: Company C produces toy trucks at a cost of $5.00 each for the first 10 [#permalink]
Expert Reply
The total cost of producing 500 toy trucks: 5 * 100 + 3.50 * 400 = $ 1,900

The total selling price of produced 500 toy trucks: 10 * 500 = $ 5,000

Total gross profit: 5,000 - 1,900 = 3,100

Answer C
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Re: Company C produces toy trucks at a cost of $5.00 each for the first 10 [#permalink]
Weighted Average (W.A.):
cost of first 100pcs 5$ then 10$ sales price - 5$ cost = 5$
cost of second 400pcs 3.5$ then 10$ sales price - 3.5$ cost = 6.5$
Simplify ration 100 to 400 = 1/4
W.A = (1*5$+ 4 *6.5$)/(1+4) = 31/5 profit for 1 pcs.
Thus, total quantity is 500pcs * 31/5 = 3100.
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Re: Company C produces toy trucks at a cost of $5.00 each for the first 10 [#permalink]
Quick solution: (10-5)*100+(10-3.5)*400=500+6.5*4*100=500+2600=3100

Answer: C
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Re: Company C produces toy trucks at a cost of $5.00 each for the first 10 [#permalink]
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Re: Company C produces toy trucks at a cost of $5.00 each for the first 10 [#permalink]
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