Questions: The cost of building garages at a new development is 10,500 per garage. If a subcontractor builds five and then sells four at 12,500 each to the developer, how much does the subcontractor now have invested?

Solution Steps

The subcontractor builds five garages, each costing \$10,500. Therefore, the total cost of building these garages is:

\[ 5 \times 10,500 = 52,500 \]

The subcontractor sells four garages at \$12,500 each. Therefore, the total revenue from selling these garages is:

\[ 4 \times 12,500 = 50,000 \]

The subcontractor's remaining investment is the total cost of building the garages minus the revenue from selling four garages:

\[ 52,500 - 50,000 = 2,500 \]

Final Answer