Mastering Profit Calculations for Electricians

What is the total profit made by an electrician who buys 100 units of armored cable connectors at $2.10 each and sells them at $3.00, with a 30% overhead?

• A. $20.00
• B. $27.00
• C. $30.00
• D. $15.00

Answer: (B)

To determine the total profit made by the electrician, we first need to calculate the total cost of the connectors, the selling price, and then account for the overhead. 1. **Calculate the total cost of the connectors**: The electrician buys 100 units at $2.10 each, which gives: \[ \text{Total Cost} = 100 \times 2.10 = 210.00 \] 2. **Calculate the total sales revenue**: The electrician sells each unit for $3.00, resulting in: \[ \text{Total Revenue} = 100 \times 3.00 = 300.00 \] 3. **Calculate the overhead costs**: The overhead is 30% of the total cost, thus: \[ \text{Overhead} = 0.30 \times 210.00 = 63.00 \] 4. **Determine the total effective cost**: To find the total cost that includes overhead, we add the overhead to the original total cost: \[ \text{Total Effective Cost} = \text{Total Cost} + \text{Overhead} = 210

When you're gearing up to master the New York State Master Electrician exam, crunching numbers isn't just about math. It's about understanding the bottom line. Let's take a look at a common scenario you might encounter: calculating profits for armored cable connectors.

So, here's the deal: You buy 100 units of these connectors at $2.10 each. What’s that on your balance sheet? Well, a quick multiplication gives you the total cost:

[

\text{Total Cost} = 100 \times 2.10 = 210.00

]

Now, it’s like shopping for shoes; the price on the tag isn't all you need to know. You also want to find out what you can sell them for, right? In this case, if you sell each unit for $3.00, the total revenue looks like this:

[

\text{Total Revenue} = 100 \times 3.00 = 300.00

]

Now, onto the nitty-gritty: overhead costs. Picture this as those extra expenses you often forget about—like the coffee runs when you're deep in work mode. If your overhead is 30% of the total cost, here's how it shakes out:

[

\text{Overhead} = 0.30 \times 210.00 = 63.00

]

You see where this is going? Knowing how to calculate your total effective cost is crucial. Add those overheads to your total cost, and you've got:

[

\text{Total Effective Cost} = \text{Total Cost} + \text{Overhead} = 210.00 + 63.00 = 273.00

]

Now let’s grab that profit! You already found out your total revenue is $300.00. Ready for the final stretch? Subtract the total effective cost from your total revenue to discover your profit:

[

\text{Total Profit} = \text{Total Revenue} - \text{Total Effective Cost} = 300.00 - 273.00 = 27.00

]

Voilà! Your profit stands at an unmissable $27.00. Pretty nifty, right? This kind of calculation matters a lot on the job. You know what? It’s not just about the money; it’s about ensuring you remain sustainable while doing what you love. You’ll want to keep your eye on those numbers to maintain your business's health.

In the world of being an electrician, knowing how your costs stack up against your sales can pave the way for future success. So, as you prep for that Master Electrician exam, keep these calculations close at hand—they are your keys to making smart financial decisions in your trade. And who wouldn't want to ensure their hard work pays off?