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Company C produces toy trucks at a cost of 5.00USD each for the first 100 trucks and 3.50USD for each additional truck. If 500 toy trucks were produced by Company C and sold for 10.00USD each, what was Company C's gross profit?

Explanation	Calculations	Help
$We use the standard profit formula to relate profit, revenue, and cost.$	$Profit = Revenue - Cost$	Theory & Tactics Method Card TRANS3-A Click to view full details
$We calculate total revenue by multiplying the selling price by the quantity sold.$	$Revenue = 10.00 \times 500 = 5000.00$	Theory & Tactics Method Card TRANS3-B Click to view full details
$We calculate total cost by summing the cost for the first 100 trucks at 5.00USD each and the additional 400 trucks at 3.50USD each.$	$100 \times 5.00 = 500.00 400 \times 3.50 = 1400.00 500.00 + 1400.00 = 1900.00$	Theory & Tactics Method Card TRANS3-B Click to view full details
$We subtract total cost from total revenue to find gross profit.$	$Profit = 5000.00 - 1900.00 = 3100.00$	Theory & Tactics Method Card TRANS3-A Click to view full details

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Company C's gross profit was 3100USD, corresponding to option C.

Company C produces toy trucks at a cost of 5.00USD each for the first 100 trucks and 3.50USD for each additional truck. If 500 toy trucks were produced by Company C and sold for 10.00USD each, what was Company C's gross profit?

Explanation	Calculations	Help
$We use the standard profit formula to relate profit, revenue, and cost.$	$Profit = Revenue - Cost$	Theory & Tactics Method Card TRANS3-A Click to view full details
$We calculate total revenue by multiplying the selling price by the quantity sold.$	$Revenue = 10.00 \times 500 = 5000.00$	Theory & Tactics Method Card TRANS3-B Click to view full details
$We calculate total cost by summing the cost for the first 100 trucks at 5.00USD each and the additional 400 trucks at 3.50USD each.$	$100 \times 5.00 = 500.00 400 \times 3.50 = 1400.00 500.00 + 1400.00 = 1900.00$	Theory & Tactics Method Card TRANS3-B Click to view full details
$We subtract total cost from total revenue to find gross profit.$	$Profit = 5000.00 - 1900.00 = 3100.00$	Theory & Tactics Method Card TRANS3-A Click to view full details

Scroll horizontally to view all columns

Company C's gross profit was 3100USD, corresponding to option C.