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

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by Vincen » Thu May 13, 2021 6:22 am
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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

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