SAT Math : How to find amount of profit

Study concepts, example questions & explanations for SAT Math

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Example Questions

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Example Question #1 : How To Find Amount Of Profit

A sunglasses kiosk at the mall makes a $50 profit for every 6 pairs of sunglasses it sells.  How many pairs of sunglasses must it sell to earn $1000 profit?

Possible Answers:

300

100

20

30

120

Correct answer:

120

Explanation:

Divide the profit per 6 pairs into the total desired profit $1000/$50 = 20. 

Multiply 20 by 6 sunglasses = 120 sunglasses.  Or use 6/50 = x/1000 and solve for x.

Example Question #2 : How To Find Amount Of Profit

Ricky works at a shoe shop, and earns $40 in commission for each pair of shoes he sells plus a $100 weekly salary. If Ricky receives no other money, which of the following expressions represents the total dollar amount Ricky receives for a week in which he sells n shoes?

Possible Answers:

100 + n

100 + 40n

140 + n

40(100 + n)

140n

Correct answer:

100 + 40n

Explanation:

If Ricky sells n shoes in a week, he earns $40n in commission. His salary is a constant $100 per week, so his total payout is $100 + $40n.

Example Question #167 : Percentage

An entrepreneur started a company making floggles.  The factory requires $1000 worth of fixed expenses to keep it running every month.  She is able to produce one floggle at the cost of $4 and sell one floggle at the cost of $6.  If she produces and sells 500 floggles in one month, what is her profit?

Possible Answers:

$1000

$3000

$4000

$0

$2000

Correct answer:

$0

Explanation:

Profit = Income - Expenditures

Income = $6/floggle times 500 floggles = $3000

Expenditures = $1000 + $4/floggle times 500 floggles = $1000 + $2000 = $3000

Profit = 3000 - 3000 = 0

Example Question #3 : How To Find Amount Of Profit

You are planning a New Year’s Eve bash.  For each person attending, the caterer will charge you $15 for food, $10 for beverages, $5 for service.  The band charges $2000 for the entire evening.  You also have to pay the venue $2500 to rent the location for the night and $3 for parking for each attendee.  If you expect 500 people to attend and you would like to make a $10000 profit for planning the event, how much must each ticket cost?

Possible Answers:

$60

$62

$33

$42

$53

Correct answer:

$62

Explanation:

First determine total cost.

Caterer: Per person = $15 + $10 + $5 = $30 per person

Parking: Per person = $3 per person

Total per person = $33

$33 * 500 people = $16,500

Plus cost of renting venue + band = $2500 + $2000 = $4500

Total (net) cost =  $16,500 + $4500  = $21,000

Total (gross) cost = net cost + profit = $21,000 + $10,000 = $31,000

Cost per ticket = Gross cost / # of attendee = $31,000 / 500 = $62

Example Question #4 : How To Find Amount Of Profit

The Widget Company has annual revenues of $150,000. Their expenses over the same time frame was $75,000.  What was the percent profit?

Possible Answers:

75%

25%

60%

50%

30%

Correct answer:

50%

Explanation:

Profit = Revenue – Expense

% Profit = $ Profit ÷ $ Total Revenue

% Profit = ($150,000 – $75,000) ÷ $150,000 = 50%

Example Question #5 : How To Find Amount Of Profit

Nicki sold 20 albums at $5 each. How many albums should Minaj sell at $4.50 to earn more than Nicki?

Possible Answers:

22

19

24

25

23

Correct answer:

23

Explanation:

The answer is 23. 23*$4.50 = $103.50, which is more than what Nicki earned.

Example Question #6 : How To Find Amount Of Profit

During Laura and Anna’s bake sale, 35 brownies, 12 cupcakes and 23 glasses of lemonade were sold. These goods cost $44 for the raw ingredients, and they sold for $79. What is the average profit per item?

Possible Answers:

$0.70

$1.75

$0.50

$0.35

$0.25

Correct answer:

$0.50

Explanation:

Total profit ($35) divided by total items (70) yields the answer of $0.50 profit per item.

Example Question #3 : How To Find Amount Of Profit

Each wooden chair that a carpenter makes requires $20 worth of supplies. He then sells the chairs for $50 each. The carpenter recently discovered a new supplier that would allow him to spend 25% less on supplies. If he doesn't change his selling price, by what percent could the carpenter increase his profit by using the new supplier?

Possible Answers:

Correct answer:

Explanation:

Using $20 worth of supplies and selling the chairs for $50 each, the carpenter is originally making a profit of $30 per chair.

The new supplier would reduce costs by 25% or 1/4. One-fourth of $20 is $5, so the new supplier would be $5 less, or $15.

If the selling price is the same ($50), then the carpenter would now make a profit of $35 per chair, a change of $5.

To calculate percent increase, divide the actual change in profit by the original profit amount, and multiply the result by 100%:

(Actual Change ÷ Original Amount) * 100% = 5/30 * 100% = 500%/30 = 16.7%

Example Question #8 : How To Find Amount Of Profit

A craftsman builds a cabinet.  He pays $250 to buy the wood and miscellaneous materials for the cabinet.  He spends 20 hours building the cabinet.  If he values his time at $40 per hour and expects a profit margin of 50% above labor and materials, how much should he charge for the cabinet?

Possible Answers:

\dpi{100} \small \$ 800

\dpi{100} \small \$ 1250

\dpi{100} \small \$ 1050

\dpi{100} \small \$ 1575

\dpi{100} \small \$ 1100

Correct answer:

\dpi{100} \small \$ 1575

Explanation:

Total Cost = Material Cost + Labor Cost + Profit

Labor Cost =  $40/hour * 20 hours = $800

Profit Margin of 50% = Cost x 0.50 = $1050 x 0.50 = $525

Total Cost = $250 + $800 + $525 = $1575

Example Question #4 : How To Find Amount Of Profit

The cost of manufacturing a single teddy bear is $6.25. A teddy bear company sells 200 bears for $1750. What is the profit percentage per single bear?

Possible Answers:

28%

140%

40%

72%

60%

Correct answer:

40%

Explanation:

First we must find out what the price is for one teddy bear, manufactured by this company. Thus we divide 1750 by 200 and find that each bear costs $8.75. To find out the profit per bear, we divide 8.75 by 6.25 to arrive at 1.4. The bears are thus sold for 140% of what it costs to make them, giving a 40% profit.

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