Question

A tire dealer sells 2 tires for as much as he paid for 3 tires. He paid $240 for a dozen tires. What is the total profit on 12 tires?

$120
$180
$240
$360
$385

Answer 1

Given that the dealer sells a dozen tires for $240, every 3-tire set costs $60. There are six 2-tire sets in a dozen. Thus, his total revenue should be $360. The total profit is the difference between the total revenue and the total cost. The answer is therefore, the first choice, $120.