A farmer produced 750 bushels of a certain crop at a cost of $20 per

Question

A farmer produced 750 bushels of a certain crop at a cost of $20 per bushel. If the farmer sold (2/3)rd of the bushels for double their production cost and sold the remaining bushels at 25 percent above their production cost, what was the farmer’s gross profit on the sale of the crop?

(A) $11250
(B) $13375
(C) $15000
(D) $18750
(E) $26250

(A) $11250
(B) $13375
(C) $15000
(D) $18750
(E) $26250

laxpro2001 · Answer

Couple of different ways to go about this.... here is one:

**Notice that the problem is asking for profit so we have to subtract cost from revenue**

Find the total cost:
750 * 20 = 15000

Break the cost up into 1/3rds of production
15000/3 = 5000

2/3rds of the crops are sold for double their cost
10000*2 - 5000*2 = 10000

1/3 is sold for 25% more than cost
5000*1.25 - 5000 = 1250

10000+1250 = 11250

answer A

TimeTraveller · Answer

2/3 (750) * 40 + (750/3) * 25 = $20,000 + $6,250 = $26,250

Gross Profit = $26,250 - (750*$20) = $26,250 - $15,000 = $11,250. Ans - A.

elegantm · Answer

Short Cut Method

On  \frac{2}{3}  of production, Gross profit earned was = 100% of $20 = $20
On  \frac{1}{3}  of production, Gross profit earned was = $25% of 20 = $5
Weighted average of Gross Profit/Bushel =  \frac{2}{3}  20 +  \frac{1}{3}  5 =  \frac{45}{3}  = 15
Total Gross Profit = 15 x 750 = 11250

Hence Answer A

pushpitkc · Answer

If the cost of production per bushel is x$
From the question stem we know that 
CP : 750x 
SP :  500(2x) + 250(\frac{5x}{4}) = 1000x + (\frac{1250x}{4}) = \frac{5250x}{4}

Profit earned(due to sale of bushel) = \frac{5250x}{4}- 750x  =  \frac{(5250x - 3000x)}{4} = \frac{2250x}{4}

Since we are given the cost of producing the bushel = 20$(in question stem, putting x=20$)

Cost :  2250*\frac{20}{4}  = 2250*5 =  11250$(Option A)

Abhishek009 · Answer

Total cost of production = $ 15000

Selling price of 2/3 rd of the bushels = 10000*2 => 20000

Selling price of remaining is  \frac{125}{100}*5000  = 6250

Gross Profit =  20000 + 6250 - 15000

So, Gross Profit is (A) 11250

ydmuley · Answer

A farmer produced 750 bushels of a certain crop at a cost of $20 per bushel. If the farmer sold (2/3)rd of the bushels for double their production cost and sold the remaining bushels at 25 percent above their production cost, what was the farmer’s gross profit on the sale of the crop?

(A) $11250
(B) $13375
(C) $15000
(D) $18750
(E) $26250

Cost of Producing 750 Bushels  = 750 * $ 20 = $ 15,000

2/3 Bushels  = 750 * \frac{2}{3} = 500

2/3 Bushels sold at double the cost  = $20 * 2 = $40

Profit per Bushels for 2/3 sold at double cost  = $40 - $20 = $20

Total Profit by selling 2/3 Bushels at double cost  = 500 * 20 = $10,000  ------------------------(1)

Remaining, or 1/3 of Bushels sold at 5% profit  = $20 + \frac{5}{100} * $20 = $20 + $ 5 = $25

Profit per Bushels for 1/3 sold at 5% profit  = $25 - $20 = $5

Total profit by selling 1/3 Bushels at 5% profit  = $5 * 250 = $1,250  ------------------------(1)

From (1) & (2) Total Profit

$10,000 + $1,250 = $11,250

Hence, Answer is A

ScottTargetTestPrep · Answer

We are given that the farmer sold 2/3 of the bushels for double their production cost; thus, he sold them for:
 
750(2/3)(40) = (500)(40) = $20,000
 
He also sold the remaining 1/3 of the bushels at 25 percent above their product cost; thus, he sold them for:
 
(750)(1/3)(1.25)(20) = (250)(25) = $6,250
 
His cost is 750(20) = $15,000.
 
Thus, the profit was:
 
20,000 + 6,250 - 15,000= $11,250
 
Answer: A

KanishkM · Answer

Initial price = 750 * 20 = 15000

New price = 500 * 40(double of 20) + 250 *25 ( 25 percent above their production cost) = 26250

Profit = 26250 - 15000
$11250

KarishmaB · Answer

Using weighted average:

100% profit on (2/3)rd of the bushels and 25% profit on (1/3)rd of the bushels.

Aavg = \frac{100*(2/3) + 25*(1/3)}{1} = 75

Average profit is 75% over the entire crop. 
 Profit = (\frac{75}{100}) * (750*20) = $11250

Answer (A)

Archit3110 · Answer

total investment = 750 * 20 ; 15,000
out of 750 ; 2/3 ; 500 were sold at 40 $ = 20,000 and other 250 @ 1.25 * 20 = 25 * 250 = 6250
total earned = 20,000+6250 = 26250 
gross profit = 26500-15000; 11250 
IMO A

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A farmer produced 750 bushels of a certain crop at a cost of $20 per

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