Midtown Delivery Service delivers packages which cost $1.10 per package to deliver. The fixed cost to run the delivery truck is $480 per day. If the company charges $6.10 per package, how many Packages must be delivered daily to make a profit of $75?
A)111 packages
B)66 packages
C)96 packages
D)436 packages

Question

Quizplus · Accepted Answer

To make a profit of $75, the total income must cover the fixed costs, the cost per package, and the desired profit. The profit per package is $6.10 (charge per package) - $1.10 (cost per package) = $5.00. The total profit needed is $480 (fixed cost) + $75 (desired profit) = $555. To find the number of packages needed to make this profit, divide the total needed profit by the profit per package: $555 / $5.00 = 111 packages.

Midtown Delivery Service Delivers Packages Which Cost $1