Question

A manufacturer sells widgets for dollars each. It costs the manufacturer dollars per widget to produce widgets and dollars per widget to produce widgets. How much greater will the manufacturer's gross profit be from the production and sale of widgets than from the production and sale of widgets?
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Answer Choices

  • A.
  • B.
  • C.
  • D.
  • E.

Steps

ExplanationCalculationsHelp
We first establish variables for revenue, cost, and profit for 600 and 1800 widgets.
Theory & Tactics Method Card
TRANS1-A
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We translate "manufacturer sells widgets for 12 dollars each" and "production and sale of 600 widgets" using the revenue formula.
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TRANS3-B
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We translate "costs the manufacturer 9 dollars per widget to produce 600 widgets" using the cost formula.
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TRANS3-B
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We calculate profit for 600 widgets using the profit formula.
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TRANS3-A
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We translate "manufacturer sells widgets for 12 dollars each" and "production and sale of 1800 widgets" using the revenue formula.
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TRANS3-B
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We translate "8.5 dollars per widget to produce 1800 widgets" using the cost formula.
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TRANS3-B
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We calculate profit for 1800 widgets using the profit formula.
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TRANS3-A
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We translate "How much greater will the manufacturer's gross profit be from the production and sale of 1800 widgets than from the production and sale of 600 widgets?" by subtracting the profit for 600 widgets from the profit for 1800 widgets.
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TRANS1-D
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Final Answer

C