SAT Math : How to find amount of profit

Study concepts, example questions & explanations for SAT Math

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Example Questions

Example Question #343 : Arithmetic

A bakery sells donuts for \displaystyle \$1.25 each. \displaystyle 20\% of the bakery's net income from donuts goes toward the cost of the ingredients, and another \displaystyle 10\% goes toward paying taxes. If the bakery sells \displaystyle 230 donuts in one day, what is their total profit for the day?

Possible Answers:

\displaystyle \$258.75

\displaystyle \$230.00

\displaystyle \$206.50

\displaystyle \$201.25

\displaystyle \$207.00

Correct answer:

\displaystyle \$201.25

Explanation:

Donuts are priced at $1.25 per unit and 230 were sold, so net income is calculated as such:

\displaystyle Net Income=\$ 1.25\cdot230=\$ 287.50

Cost of materials and tax are calculated as such, respectively:

\displaystyle 0.20\cdot\$287.50=\$57.50

\displaystyle 0.10\cdot\$287.50=\$28.75

Net profit is calculated by deducting cost of materials and tax from net income:

\displaystyle \$287.50-\$57.50-\$28.75=\$201.25

Example Question #344 : Arithmetic

A fishing boat in Alaska nets \displaystyle \$85,000 in revenue from the salmon run. If local taxes are \displaystyle 3\% and each of the five crew members take a \displaystyle 3\% cut of the net income, what is the remaining profit for the boat's owners?

Possible Answers:

\displaystyle \$65,750

\displaystyle \$72,250

\displaystyle \$82,450

\displaystyle \$69,700

\displaystyle \$58,500

Correct answer:

\displaystyle \$69,700

Explanation:

Of the $85,000 in revenue, five crew members and local taxes each take a 3% cut, the total of which is calculated as:

\displaystyle Expense=(0.03\cdot 6)\cdot\$85,000

\displaystyle Expense=0.18\cdot\$85,000

\displaystyle Expense=\$15,300

Next, we just subtract the expenses from tax and crew-member pay to determine net profit:

\displaystyle Profit=\$85,000-\$15,300=\$69,700

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