New York State Master Electrician Practice Exam

What is the total profit made by an electrician who buys 100 units of armored cable connectors at $2.10 each and sells them at $3.00, with a 30% overhead?

1. $20.00

2. $27.00

3. $30.00

4. $15.00

The correct answer is: $27.00

To determine the total profit made by the electrician, we first need to calculate the total cost of the connectors, the selling price, and then account for the overhead. 1. **Calculate the total cost of the connectors**: The electrician buys 100 units at $2.10 each, which gives: \[ \text{Total Cost} = 100 \times 2.10 = 210.00 \] 2. **Calculate the total sales revenue**: The electrician sells each unit for $3.00, resulting in: \[ \text{Total Revenue} = 100 \times 3.00 = 300.00 \] 3. **Calculate the overhead costs**: The overhead is 30% of the total cost, thus: \[ \text{Overhead} = 0.30 \times 210.00 = 63.00 \] 4. **Determine the total effective cost**: To find the total cost that includes overhead, we add the overhead to the original total cost: \[ \text{Total Effective Cost} = \text{Total Cost} + \text{Overhead} = 210