How much profit does an electrician make when he sells 100 units of armored cable connectors bought for $2.10 each at a selling price of $3.00 each, with 30% overhead?

How much profit does an electrician make when he sells 100 units of armored cable connectors bought for $2.10 each at a selling price of $3.00 each, with 30% overhead?

• A. $20.00
• B. $25.00
• C. $27.00
• D. $30.00

Answer: (C)

To find the profit made by the electrician when selling the armored cable connectors, we first need to calculate the total cost of purchasing the connectors and then determine the total revenue generated from selling them. The purchase price per connector is $2.10, and if the electrician buys 100 units, the total cost is calculated as follows: Total cost = Purchase price x Number of units Total cost = $2.10 x 100 = $210.00. Next, the selling price per connector is $3.00. Therefore, the total revenue from selling 100 units is: Total revenue = Selling price x Number of units Total revenue = $3.00 x 100 = $300.00. Now, the gross profit before considering overhead expenses can be calculated: Gross profit = Total revenue - Total cost Gross profit = $300.00 - $210.00 = $90.00. However, the electrician incurs an overhead of 30%, which needs to be deducted from the gross profit. The calculation of overhead is based on the total cost: Overhead = 30% of Total Cost Overhead = 0.30 x $210.00 = $63.00. After determining the overhead cost, the

To find the profit made by the electrician when selling the armored cable connectors, we first need to calculate the total cost of purchasing the connectors and then determine the total revenue generated from selling them.

The purchase price per connector is $2.10, and if the electrician buys 100 units, the total cost is calculated as follows:

Total cost = Purchase price x Number of units

Total cost = $2.10 x 100 = $210.00.

Next, the selling price per connector is $3.00. Therefore, the total revenue from selling 100 units is:

Total revenue = Selling price x Number of units

Total revenue = $3.00 x 100 = $300.00.

Now, the gross profit before considering overhead expenses can be calculated:

Gross profit = Total revenue - Total cost

Gross profit = $300.00 - $210.00 = $90.00.

However, the electrician incurs an overhead of 30%, which needs to be deducted from the gross profit. The calculation of overhead is based on the total cost:

Overhead = 30% of Total Cost

Overhead = 0.30 x $210.00 = $63.00.

After determining the overhead cost, the