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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 $10.00 each, what was Company C`s gross profit?$2,250$2,500$3,100$3,250下一题 Next

Question

Company C produces toy trucks at a cost of 5.00eachforthefirst100trucksand5.00 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 10.00each,whatwasCompanyCsgrossprofit?10.00 each, what was Company C`s gross profit?2,2502,5002,5003,100$3,250下一题 Next

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Solution

To solve this problem, we need to calculate the total cost of production and then subtract it from the total revenue to get the gross profit.

Step 1: Calculate the cost of the first 100 trucks The first 100 trucks cost 5.00each,sothetotalcostforthefirst100trucksis100trucks5.00 each, so the total cost for the first 100 trucks is 100 trucks * 5.00/truck = $500.

Step 2: Calculate the cost of the remaining trucks The remaining 400 trucks (500 trucks - 100 trucks) cost 3.50each,sothetotalcostfortheremainingtrucksis400trucks3.50 each, so the total cost for the remaining trucks is 400 trucks * 3.50/truck = $1400.

Step 3: Calculate the total cost of production The total cost of production is the sum of the cost of the first 100 trucks and the cost of the remaining trucks, which is 500+500 + 1400 = $1900.

Step 4: Calculate the total revenue The total revenue is the selling price of the trucks times the number of trucks sold, which is 500 trucks * 10.00/truck=10.00/truck = 5000.

Step 5: Calculate the gross profit The gross profit is the total revenue minus the total cost of production, which is 50005000 - 1900 = $3100.

So, the gross profit of Company C is $3100.

This problem has been solved

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