How to find amount of profit
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PSAT Math › 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?
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%
Nicki sold 20 albums at \$5 each. How many albums should Minaj sell at \$4.50 to earn more than Nicki?
19
22
23
24
25
Explanation
The answer is 23. 23*$4.50 = $103.50, which is more than what Nicki earned.
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?
\$62
\$60
\$42
\$33
\$53
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
The Widget Company has annual revenues of \$150,000. Their expenses over the same time frame was \$75,000. What was the percent profit?
25%
75%
50%
60%
30%
Explanation
Profit = Revenue – Expense
% Profit = $ Profit ÷ $ Total Revenue
% Profit = (\$150,000 – \$75,000) ÷ \$150,000 = 50%
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?
100 + n
40(100 + n)
140_n_
140 + n
100 + 40_n_
Explanation
If Ricky sells n shoes in a week, he earns \$40_n_ in commission. His salary is a constant \$100 per week, so his total payout is $100 + $40_n._
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?
20
30
120
100
300
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.
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?
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
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?
40%
28%
60%
72%
140%
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.
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?
\$1000
\$2000
\$3000
\$4000
\$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
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?
\$0.35
\$0.25
\$0.50
\$1.75
\$0.70
Explanation
Total profit (\$35) divided by total items (70) yields the answer of \$0.50 profit per item.