27. John Jones has decided to go into the business of producing and selling boats. In order to begin this venture, he must invest $10 million in a boat production plant. The cost to produce each boat will be $7,000, and the selling price will be $20,000. Accounting for the cost of the production plant, which of the following expressions represents the profit, in dollars, that John will realize when x boats are produced and sold?

Answer and Explanation

Your Answer is

Correct Answer is A

Explanation

The gross profit of each ship is 13,000, and the fixed cost is 10 million. Therefore, subtracting the fixed cost from the total gross profit is the net profit, which is the expression in A. Choose A.