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# A taxi driver makes \$50 an hour, but pays \$100 a day rent fo

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A taxi driver makes \$50 an hour, but pays \$100 a day rent fo [#permalink]  19 May 2018, 13:44
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Question Stats:

72% (01:51) correct 27% (02:41) wrong based on 11 sessions
A taxi driver makes \$50 an hour, but pays \$100 a day rent for his taxi and has other costs that amount to \$0.50 per mile. If he works three 7-hour days and one 9-hour day and drives a total of 600 miles in one week, what is his profit?

(A) \$700
(B) \$800
(C) \$1,100
(D) \$1,200
(E) \$1,500
[Reveal] Spoiler: OA

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Sandy
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Re: A taxi driver makes \$50 an hour, but pays \$100 a day rent fo [#permalink]  27 Nov 2018, 07:17
Expert's post
sandy wrote:
A taxi driver makes \$50 an hour, but pays \$100 a day rent for his taxi and has other costs that amount to \$0.50 per mile. If he works three 7-hour days and one 9-hour day and drives a total of 600 miles in one week, what is his profit?

(A) \$700
(B) \$800
(C) \$1,100
(D) \$1,200
(E) \$1,500

REVENUE
Taxi driver makes \$50 an hour. He works three 7-hour days and one 9-hour day
Total work time = (3)(7) + 9 = 30 hours
TOTAL revenue = (30 hours)(\$50/hour) = \$1500

EXPENSES
Driver pays \$100 a day rent for his taxi, and has other costs that amount to \$0.50 per mile. He drives a total of 600 miles in one week
4 days of taxi rental = (4)(\$100) = \$400
600 miles at \$0.50 per mile = (600)(0.50) = \$300
TOTAL expenses = \$400 + \$300 = \$700

What is his profit?
Profit = revenue - expenses
= \$1500 - \$700
= \$800

Cheers,
Brent
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Brent Hanneson – Creator of greenlighttestprep.com

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Re: A taxi driver makes \$50 an hour, but pays \$100 a day rent fo [#permalink]  03 Dec 2018, 10:47
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How do you know to assume that he only pays rent on each day he actually worked (total of 4 days for 400 dollars) vs 100 dollars a day for the week (7 days totaling 700 dollars)?

I got this right but only after realizing that there was no answer for 1050+450 - 300 for gas and -700 for each day of the week. So then I figured they meant 100 for each day he uses the taxi.
GRE Instructor
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Re: A taxi driver makes \$50 an hour, but pays \$100 a day rent fo [#permalink]  03 Dec 2018, 11:32
Expert's post
natdalto wrote:
How do you know to assume that he only pays rent on each day he actually worked (total of 4 days for 400 dollars) vs 100 dollars a day for the week (7 days totaling 700 dollars)?

I got this right but only after realizing that there was no answer for 1050+450 - 300 for gas and -700 for each day of the week. So then I figured they meant 100 for each day he uses the taxi.

Good point!!
Rest assured that, on test day, you will not encounter such ambiguity.

Cheers,
Brent
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Brent Hanneson – Creator of greenlighttestprep.com

Re: A taxi driver makes \$50 an hour, but pays \$100 a day rent fo   [#permalink] 03 Dec 2018, 11:32
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