Question

Kevin works for a company which produces printers. A printer sells for $163.95 and costs $48.28 to produce. In one month, Kevin’s company sold 427 printers, earning a profit of 22,599.09. How great were the company’s non-production overhead expenses, to the nearest dollar?
a.
$13,410
b.
$20,616
c.
$24,809
d.
$26,792


Please select the best answer from the choices provided

A
B
C
D

Answer 1

Compute revenue and production cost, then subtract profit to get overhead.

Revenue = 427 × $163.95 = $70,006.65
Production cost = 427 × $48.28 = $20,615.56
Revenue − Production cost = $49,391.09
Overhead = $49,391.09 − $22,599.09 = $26,792.00

Answer: D ($26,792).