College Math Placement Practice Test 2026 – Comprehensive All-in-One Guide for Exam Success!

Question: 1 / 400

If the cost of an item is $40 and it is sold for $60, what is the profit?

Profit = $10

Profit = $15

Profit = $20

To determine the profit made from selling an item, you subtract the cost of the item from the selling price. In this case, the cost of the item is $40, and it is sold for $60.

The formula for calculating profit is:

Profit = Selling Price - Cost Price

Using the values given:

Profit = $60 - $40 = $20

This calculation shows that the profit made when the item is sold for $60 after costing $40 is indeed $20. Therefore, the accurate answer is that the profit equals $20.

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Profit = $25

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