1. John jones has decided to go into the business of producing and selling boats. In order to begin this venture, he must invest $10million in a boat production plant. The cost to produce each boat will be $7,000,and the selling price will be 20,000.Accounting for the cost of the production plant, which of the following expressions represents the profit,in dollars, that john will realize when x boats are produced and sold?

Question

1. John jones has decided to go into the business of producing and selling boats. In order to begin this venture, he must invest $10million in a boat production plant. The cost to produce each boat will be $7,000,and the selling price will be 20,000.Accounting for the cost of the production plant, which of the following expressions represents the profit,in dollars, that john will realize when x boats are produced and sold?

A. 13,000x-10,000,000
B. 27,000x-10,000,000
C. 9,973,000x
D. 13,000x

Answer 1

B. 27,000x - 10,000,000

Explanation:
Profit = (Selling Price - Cost to Produce) * Number of Boats
Profit = (20,000 - 7,000) * x
Profit = 13,000 * x

Taking into account the initial investment of $10,000,000 in the production plant, the expression for the profit becomes:
Profit = 13,000x - 10,000,000
Therefore, option B is the correct answer.