Praxis 5003 Practice Test Practice Question
What is the profit, in dollars, after Sakiya produces and sells 20 boxes? Note: Profit Amount earned from sales cost of production
Correct Answer: C
Rationale: To determine the profit, we subtract the total cost of production from the total sales revenue. If Sakiya sells 20 boxes for $10 each, the total revenue is $200. If the cost of production for those 20 boxes is $110, the profit would be $200 - $110 = $90.
Option A (30) underestimates the profit, likely ignoring the total sales revenue. Option B (80) miscalculates by possibly considering a lower cost or incorrect revenue. Option D (120) overestimates profit, possibly by miscalculating sales or production costs. Thus, $90 accurately reflects the profit after accounting for both sales and production costs.
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