Profit

Practice Questions

GMAT Quantitative Reasoning › Profit

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1

Company B produces toy trucks for a shopping mall at a cost of $7.00 each for the first 500 trucks and $5.00 for each additional truck. If 600 trucks were produced by Company B and sold for $15.00 each, what was Company B’s gross profit?

2

Find the number of units, , that a company must sell to break even if the profit equation is .

3

The stock we just bought soared percent, in other words our position increased by . How much did we initially invest?

4

It costs a company an average of to build one of their custom woodchippers. The company makes an average profit of of the cost of building a machine. To the nearest dollar, what is the average net profit the company makes per unit sold?

5

Adam buys 12 broken cell phones for $50 each. If he fixes the cell phones and sells them each for $80, what is his total profit?

6

Mary works at a clothing store. She makes $13/hour and works 40 hours a week. Working at the clothing store gives her a 25% discount on anything they sell. If she buys a sweater that retails for $50 and a jacket that retails for $144, what is her net profit for the week?

7

Read the problem below:

The German Club wants to make and sell cookies in order to raise $500 for a field trip. The equipment they want to use costs $400 to rent and to operate, and the ingredients for the cookies cost 45 cents per cookie. The German Club wants to sell the cookies for $2.25 each. At this price, how many cookies will they need to sell in order to earn back the money they paid for the ingredients and the equipment rental and make a profit of $500?

If is the number of cookies sold, then which of the following equations represents the revenue function?

8

A non-profit organization is selling shirts to raise money. They purchase 500 shirts at a cost of $5 per shirt. During the course of the month, they are only able to sell 388 shirts. They donate the extra shirts. If the shirts sell for $13 each, how much does the organization earn/lose during this campaign?

9

Last year, a car dealer purchased four cars for $5,000 each, and then later in the year he bought eight more cars for $7,000 each. If this year the car dealer sells the 12 cars for a combined total of $126,000, what is his net profit?

10

Read the problem below:

The French Club wants to make and sell cookies in order to raise $500 for a field trip. The equipment they want to use costs $400 to rent and to operate, and the ingredients for the cookies cost 45 cents per cookie. The French Club wants to sell the cookies for $2 each. At this price, how many cookies will they need to sell in order to earn back the money they paid for the ingredients and the equipment rental and make a profit of $500?

If is the number of cookies sold, then which of the following equations represents the cost function?

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