Question

Richard buys, fixes, resells small devices, like the Mir487, which consistently needs a transistor replaced. He can buy the transistor for $8.10 and a broken Mir487 for $51.90. Once fixed, he resells the new Mir487 for $224.96. Approximately how much profit will Richard make if he resells 10 Mir487 devices?
A.
$2,170.00
B.
$1,730.00
C.
$1,650.00
D.
$2,200.00

Answer 1

Calculate the profit on one device, and then multiply the result by 10.

Cost of broken Mir487 + cost of transistor + profit = $224.96
               $51.90           +        $8.10           +  profit + $224.96

                $60                                              + profit = $224.96

Profit on the sale of one refurbished Mir487:   $164.96

Profit on the sale of 10 refurb'd units:               $1649.60

Which of the four given possible answers is closest to $1649.60?