dernea gardening sells wheelbarrows. a wheelbarrow costs $6.94 to produce and it sells for $42.50. the…

dernea gardening sells wheelbarrows. a wheelbarrow costs $6.94 to produce and it sells for $42.50. the company employs two salespeople, each of whom earns a different commission per wheelbarrow sold, as shown in the table below.\n|salesperson|sold|commission/sale|\n|travis|36|$7.50|\n|gary|48|$10.60|\nthe companys expenses last month, not counting production costs or commissions, totaled $524.24. how much profit did dernea gardening make from the sales of wheelbarrows last month?\n a. $3,570\n b. $1,886\n c. $1,684\n d. $2,208

dernea gardening sells wheelbarrows. a wheelbarrow costs $6.94 to produce and it sells for $42.50. the company employs two salespeople, each of whom earns a different commission per wheelbarrow sold, as shown in the table below.\n|salesperson|sold|commission/sale|\n|travis|36|$7.50|\n|gary|48|$10.60|\nthe companys expenses last month, not counting production costs or commissions, totaled $524.24. how much profit did dernea gardening make from the sales of wheelbarrows last month?\n a. $3,570\n b. $1,886\n c. $1,684\n d. $2,208

Answer

Explanation:

Step1: Calculate total revenue

The selling - price of a wheelbarrow is $42.50$. Travis sold 36 wheelbarrows and Gary sold 48 wheelbarrows. The total number of wheelbarrows sold is $36 + 48=84$. The total revenue is the selling - price per wheelbarrow times the total number of wheelbarrows sold, so $R = 42.50\times(36 + 48)=42.50\times84 = 3570$.

Step2: Calculate total production cost

The production cost per wheelbarrow is $6.94$. The total number of wheelbarrows sold is 84. So the total production cost is $C_{prod}=6.94\times84 = 583.04$.

Step3: Calculate total commission

Travis's commission per sale is $7.50$ and he sold 36 wheelbarrows, so his total commission is $7.50\times36 = 270$. Gary's commission per sale is $10.60$ and he sold 48 wheelbarrows, so his total commission is $10.60\times48 = 508.8$. The total commission is $C_{comm}=270 + 508.8=778.8$.

Step4: Calculate total expenses

The non - production and non - commission expenses are $524.24$. The total expenses $C = C_{prod}+C_{comm}+524.24=583.04 + 778.8+524.24 = 1886.08$.

Step5: Calculate profit

Profit $P=R - C$. Substitute $R = 3570$ and $C = 1886.08$ into the formula, we get $P=3570-1886.08 = 1683.92\approx1684$.

Answer:

c. $1,684$