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11 Nov 2020, 05:25
Kudos
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C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
5%
(low)
Question Stats:
99% (01:18) correct
1%
(01:04)
wrong
based on 79
sessions
History
Date
Time
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Not Attempted Yet
It costs a certain bicycle factory $10,000 to operate for one month, plus $300 for each bicycle produced during the month. Each of the bicycles sells for a retail price of $700. The gross profit of the factory is measured by total income from sales minus the production costs of the bicycles and the factory operation cost. If 50 bicycles are produced and sold during the month, what is the factory’s gross profit?
A. $9,000
B. $9,500
C. $10,000
D. $10,500
E. $11,000
A. $9,000
B. $9,500
C. $10,000
D. $10,500
E. $11,000
11 Nov 2020, 07:14
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Bunuel
Each of the bicycles sells for a retail price of $700.
If 50 bicycles are sold, the TOTAL REVENUE = (50)($700) = $35,000
It costs a certain bicycle factory $10,000 to operate for one month, plus $300 for each bicycle produced during the month.
If 50 bicycles are produced, TOTAL EXPENSES = $10,000 + (50)($300) = $25,000
PROFIT = REVENUE - EXPENSES
= $35,000 - $25,000
= $10,000
Answer: C
Cheers,
Brent
11 Nov 2020, 07:40
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Bunuel
\(700*50 - (10000 + 300*50)\)
\(=35000 - (10000 + 15000)\)
\(=35000 - 25000\)
\(= 10000\) , Answer must be (C)
