Question

Ron charges $10 to park a car in his parking lot. He pays $50 per day to rent the lot. If 40 cars park in his lot during the day, how much does he earn after expenses?

Answer 1

$350

Explanation:

We know that:

• Ron charges $10 per car.
• He pays $50 per day for the whole lot.
• He parks 40 cars per day.

The total cost for the whole lot per day is fixed $50, which is his expense. The total income he receives for the cars is: $10(40) = $400. So, the difference between the total expenses and the total income is:

$400 - $50 = $350

Therefore, Ron has a net profit of $350 after expenses.