Question

A boathouse costs $2200 a month to operate, and it spends $550 each month for *

every boat that it docks. The boathouse charges a monthly fee of $850 to dock a
boat. How much profit will they earn each month if they dock 100 boats?
O $20,000
O $25,600
O $27,800
O $29,500

Answer 1

Explanation:

First, we need to determine the total revenue from docking 100 boats:

$850 per boat x 100 boats = $85,000

Next, we need to determine the total cost of operating the boathouse:

$2200 (fixed cost) + $550 for each of the 100 boats = $77,200

Finally, we can calculate the monthly profit:

Revenue - Cost = $85,000 - $77,200 = $7,800

Therefore, the answer is option C: $27,800.