A company made one of the largest single purchases of long-distance telephone time in history. It purchased 41 million minutes at a total cost of $1 comma 230 comma 000. If the company resells the phone time at an average of 6 cents per minute, how much profit will it make on the purchase?

Question

Mathematics

Baby Bird

10 December, 22:59

A company made one of the largest single purchases of long-distance telephone time in history. It purchased 41 million minutes at a total cost of $1 comma 230 comma 000. If the company resells the phone time at an average of 6 cents per minute, how much profit will it make on the purchase?

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Answers (1)

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Boss · Answer 1

Profit of $1,230,000

Step-by-step explanation:

Data provided in the question:

Number of minutes purchased = 41 million

Total cost of the minutes purchased = $1,230,000

Selling cost of the phone time = 6 cents per minute = $0.06

Now,

Total sales value

= Number of minutes purchased * Selling cost of the phone time

= 41 million * $0.06

= 41,000,000 * $0.06

= $2,460,000

Therefore,

Profit = Sales value - Cost of purchase

= $2,460,000 - $1,230,000

= $1,230,000

Hence,

Profit of $1,230,000