GMAT Question  >  Company C produces toy trucks at a cost of $5... Save

Related Test

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?
  • a)
        $2,250
  • b)
        $2,500
  • c)
        $3,100
  • d)
        $3,250
  • e)
        $3,500
Correct answer is option 'C'. Can you explain this answer?

Answers

The company’s gross profit on the 500 toy trucks is the company’s revenue from selling the trucks minus the company’s cost of producing the trucks. The revenue is (500)($10.00) = $5,000.The cost for the first 100 trucks is (100)($5.00) = $500, and the cost for the other 400 trucks is (400)($3.50) = $1,400 for a total cost of $500 + $1,400 = $1,900. Thus, the company's gross profit is $5,000 - $1,900 = $3,100.
The correct answer is C.

View courses related to this question
Explore GMAT courses
Explore GMAT courses
View courses related to this question
1 Crore+ students have signed up on EduRev. Have you?

Similar GMAT Doubts

  • Marginal analysis is an important decision-making tool in the business worl... more

  • 1 Answer

  • Marginal analysis is an important decision-making tool in the business worl... more

  • 1 Answer

  • The graph shown is a scatter plot with 60 points, each representing the num... more

  • 1 Answer

  • Manager: A new machine that can bring down our operational costs by 20% has... more

  • 1 Answer

Question Description
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 Cs gross profit?a) $2,250b) $2,500c) $3,100d) $3,250e) $3,500Correct answer is option 'C'. Can you explain this answer? for GMAT 2023 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about 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 Cs gross profit?a) $2,250b) $2,500c) $3,100d) $3,250e) $3,500Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for GMAT 2023 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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 Cs gross profit?a) $2,250b) $2,500c) $3,100d) $3,250e) $3,500Correct answer is option 'C'. Can you explain this answer?.
Solutions for 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 Cs gross profit?a) $2,250b) $2,500c) $3,100d) $3,250e) $3,500Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for GMAT. Download more important topics, notes, lectures and mock test series for GMAT Exam by signing up for free.
Here you can find the meaning of 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 Cs gross profit?a) $2,250b) $2,500c) $3,100d) $3,250e) $3,500Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of 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 Cs gross profit?a) $2,250b) $2,500c) $3,100d) $3,250e) $3,500Correct answer is option 'C'. Can you explain this answer?, a detailed solution for 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 Cs gross profit?a) $2,250b) $2,500c) $3,100d) $3,250e) $3,500Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of 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 Cs gross profit?a) $2,250b) $2,500c) $3,100d) $3,250e) $3,500Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice 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 Cs gross profit?a) $2,250b) $2,500c) $3,100d) $3,250e) $3,500Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice GMAT tests.
The company’s gross profit on the 500 toy trucks is the company’s revenue from selling the trucks minus the company’s cost of producing the trucks. The revenue is (500)($10.00) = $5,000.The cost for the first 100 trucks is (100)($5.00) = $500, and the cost for the other 400 trucks is (400)($3.50) = $1,400 for a total cost of $500 + $1,400 = $1,900. Thus, the companys gross profit is $5,000 - $1,900 = $3,100.The correct answer is C.