### All SAT Math Resources

## Example Questions

### Example Question #3 : Profit Margin

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:**

60%

75%

25%

50%

30%

**Correct answer:**

50%

Profit = Revenue – Expense

% Profit = $ Profit ÷ $ Total Revenue

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

### Example Question #3 : 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:**

19

23

24

22

25

**Correct answer:**

23

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

### Example Question #4 : 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:**

$0.35

$1.75

$0.70

$0.25

$0.50

**Correct answer:**

$0.50

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

### Example Question #171 : Percentage

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:**

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 #172 : Percentage

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:**

**Correct answer:**

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 #173 : Percentage

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:**

140%

72%

28%

60%

40%

**Correct answer:**

40%

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.

### Example Question #1225 : Sat Mathematics

A bakery sells donuts for each. of the bakery's net income from donuts goes toward the cost of the ingredients, and another goes toward paying taxes. If the bakery sells donuts in one day, what is their total profit for the day?

**Possible Answers:**

**Correct answer:**

Donuts are priced at $1.25 per unit and 230 were sold, so net income is calculated as such:

Cost of materials and tax are calculated as such, respectively:

Net profit is calculated by deducting cost of materials and tax from net income:

### Example Question #175 : Percentage

A fishing boat in Alaska nets in revenue from the salmon run. If local taxes are and each of the five crew members take a cut of the net income, what is the remaining profit for the boat's owners?

**Possible Answers:**

**Correct answer:**

Of the $85,000 in revenue, five crew members and local taxes each take a 3% cut, the total of which is calculated as:

Next, we just subtract the expenses from tax and crew-member pay to determine net profit:

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