Gross Profit per Light Bulb

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Company X bought a shipment of light bulbs $3 per bulb, paid $1,200 to store and ship the bulbs, and later sold the bulbs for $13 per bulb. The gross profit earned from these sales is the total income from sales minus the total cost. If a batch contained 1,500 light bulbs, then Company X's gross profit per bulb is

Review: Gross Profit per Light Bulb


Explanation

The question defines gross profit for us and then tells us it wants the gross profit per bulb, which will be the gross profit divided by the number of bulbs. Therefore, we are looking for



The income was $13 times the number of bulbs. There are two costs: $3 times the number of bulbs, and the flat cost of $1,200. And we have the number of bulbs: 1,500. Carefully plugging, we have







We could have jumped straight to this point: since the company is selling for $10 than it's buying, it's making $10 per bulb, minus the per-bulb price of the storage cost (which is ).

The correct answer is (C).


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