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A certain company sold 800 units of its product for

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A certain company sold 800 units of its product for

by VJesus12 » Thu Apr 12, 2018 9:40 am
A certain company sold 800 units of its product for $8 each and 1,000 units of its product for $5 each. If the company's cost of producing each unit of its product was $6, what was the company's profit or loss on the 1,800 units of its product?

(A) $1,600
(B) $600 loss
(C) No profit or loss
(D) $600 profit
(E) $1,600 profit

The OA is the option D.

I am confused. How can I solve this PS question? I would be thankful for your help.
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by swerve » Thu Apr 12, 2018 9:46 am
Hi VJesus12,

You can try as follows,

Loss from 1000 units will be 1$*1000 = 1000$.

Profit from 800 units will be 2$*800 = 1600$.

Overall 600$ Profit.

Option D.

Regards!
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by Vincen » Thu Apr 12, 2018 9:59 am
Hi Vjesus12.

I would solve it as follows:

- The Cost of producing each unit of its product is $6.

- Sold 800 units of its product for $8 each one. Profit per unit = $8-6 = $2.

- Sold 1,000 units of its product for $5 each one. Loss per unit = $6-5 = $1.

Final profit = (Nº units sold price 1)*(profit per unit) - (Nº units sold price 2)*(loss per unit) $$Final\ profit=(Nºunits\ sold\ price\ 1)*(profit\ per\ unit)-(Nºunits\ sold\ price\ 2)*(loss\ per\ unit)$$ $$=\ 800\left(2\right)-1000\left(1\right)\ $$ $$=\ 1600-1000$$ $$=\ 600\ \ .$$ Therefore, the correct answer is the option D.

I hope this explanation may help you.
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by Scott@TargetTestPrep » Thu Jul 05, 2018 3:51 pm
VJesus12 wrote:A certain company sold 800 units of its product for $8 each and 1,000 units of its product for $5 each. If the company's cost of producing each unit of its product was $6, what was the company's profit or loss on the 1,800 units of its product?

(A) $1,600
(B) $600 loss
(C) No profit or loss
(D) $600 profit
(E) $1,600 profit
The company made a total revenue of (800 x 8 + 1,000 x 5) = 6,400 + 5,000 = $11,400.

The total cost was 6 x 1,800 = $10,800.

Thus, the profit was 11,400 - 10,800 = $600.

Answer: D

Scott Woodbury-Stewart
Founder and CEO
[email protected]

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