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Cost, Revenue, and Profit Models
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GMAT
Q.170 Cost, Revenue, and Profit Models
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A seasonal shop purchases q items. It sells 80% of them at $14 each and the remaining 20% at $10 each. Fixed cost is $2,400, and each item costs $6. Which expression represents profit?
A
14(0.80q) + 10(0.20q) - (2400 + 6q)
B
14(0.20q) + 10(0.80q) - (2400 + 6q)
C
2400 + 6q - 14(0.80q) - 10(0.20q)
D
(14 - 6)(0.80q) + (10 - 6)(0.20q) + 2400
E
14q - (2400 + 6(0.80q) + 10(0.20q))
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