Company C produces toy trucks at a cost of $5.00 each for the first 100 trucks and $3.50 for each ...
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 $8.00 each, what was Company C’s gross profit?
Answer/Solution
$2,100
Steps/Work
Cost of 500 trucks: (100 * 5 ) + (400 * 3.5) = 500 + 1400 =$ 1900
Revenue : 500 * 8 = $4000
Profit: 4000 - 1900 = $ 2100
Option C is correct
Revenue : 500 * 8 = $4000
Profit: 4000 - 1900 = $ 2100
Option C is correct