Bunuel wrote:
A rug manufacturer produces rugs at a cost of $75 per rug. What is the manufacturer's gross profit from the sale of 150 rugs if 2/3 of the rugs are sold for $150 per rug and the rest are sold for $200 per rug?
A. $10,350
B. $11,250
C. $13,750
D. $16,250
E. $17,800
We see that ⅔ of the 150 rugs, or 100 rugs, are sold for $150 each, and the remaining 50 rugs are sold for $200 each. Since profit = revenue - cost, we have:
Profit = (100 x 150 + 50 x 200) - (150 x 75)
Profit = 15,000 + 10,000
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