Question

It costs a lumberyard $2.05 per cubic foot of lumber. If they sell the lumber back to their customers for $21.98 per cubic foot and

sell an average of 100 cubic feet of lumber per month, what is the approximate profit made by the lumberyard per year?

Answer 1

The profit per year will be $23916

Explanation:

Cost price of 1 ft³ = $2.05

Selling price of 1 ft³ = $21.98

Profit = Selling price - cost price

profit = $21.98 - $2.05

Profit = $19.93

Profit on 1 ft³ is $19.93

If they sell 100 monthly, per year (12 months), profit will be

19.93*100*12

= $23916