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# Company C produces toy trucks at a cost of $5.00 each for the first 10 SORT BY: Tags: Show Tags Hide Tags Manager Joined: 09 Jan 2016 Status:Persevere Posts: 107 Own Kudos [?]: 3714 [14] Given Kudos: 94 Location: Hong Kong GMAT 1: 750 Q50 V41 GPA: 3.52 Manager Joined: 18 Jan 2010 Posts: 209 Own Kudos [?]: 1014 [4] Given Kudos: 9 Manager Joined: 22 Apr 2016 Status:On a 600-long battle Posts: 122 Own Kudos [?]: 104 [3] Given Kudos: 392 Location: Hungary Concentration: Accounting, Leadership Schools: Erasmus '19 GMAT 1: 410 Q18 V27 GMAT 2: 490 Q35 V23 Manager Joined: 06 Sep 2018 Posts: 127 Own Kudos [?]: 59 [1] Given Kudos: 72 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]
1
Kudos
total cost=100*5 + 400*3.5 = 500+1400=1900
Revenue= 500*10 = 5000
so
profit= 5000-1900 = 3100

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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 Senior Manager Joined: 25 Aug 2020 Posts: 250 Own Kudos [?]: 142 [0] Given Kudos: 216 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 Non-Human User Joined: 09 Sep 2013 Posts: 34013 Own Kudos [?]: 852 [0] Given Kudos: 0 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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