The total cost for Company $X$ to produce a batch of tools is $\$10,000$ plus $\$3$ per tool. Each tool sells for

The total cost for Company $X$ to produce a batch of tools is $\$10,000$ plus $\$3$ per tool. Each tool sells for $\$8.$ The gross profit earned from producing and selling these tools is the total income from sales minus the total production cost. If a batch of $20,000$ tools is produced and sold, then Company $X$’s gross profit per tool is

(A) $\$3.00$
(B) $\$3.75$
(C) $\$4.50$
(D) $\$5.00$
(E) $\$5.50$

Answer: C

Source: GMAT Paper Tests

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