Washington Construction built 12 ranch houses

Question

Washington Construction built 12 ranch houses for $115,000 each. From the sale of these houses, Washington received $1,980,000. How much gross profit (Sales − Costs = Gross profit) did Washington make on the houses?

Answer 1

Hi Aquellah.

 

Costs would be 12 * $115,000  = $1,380,000   This is how much the construction company spent to build all 12 ranch houses.

 

Sales - Costs  =  1,980,000 - 1,380,000 = Gross Profit 

 

Gross Profit = $600,000