The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. How many cords of wood would he have to split with this machine to make a profit of $30,000?
A)3,200
B)1,500
C)2,000
D)1,000
E)500

Question

Quizplus · Accepted Answer

The profit is the difference between the selling price and the cost of purchasing and splitting the wood. The cost of purchasing and splitting the wood is $100 per cord, and the selling price is $125 per cord. So the profit per cord is $25. To make a profit of $30,000, the owner would have to split 30,000 / 25 = 1,200 cords of wood.

The Owner of Firewood to Go Is Considering Buying a Hydraulic