What is the developer's potential profit on the 20-acre tract?

To determine the developer's potential profit on the 20-acre tract, you would typically analyze the total revenue generated from the project and subtract the total development costs associated with it. The correct answer of $531,200 likely indicates that after calculating income (such as from selling the developed lots or properties) and deducting costs (like land acquisition, construction, permits, labor, and materials), this figure represents the developer's net profit.

The calculation involved in reaching this figure takes into account factors like market demand, property location, estimated selling prices per lot, and how many lots can feasibly be developed on the tract. By accurately estimating these variables, the profitability of the development can be more clearly assessed, leading to the conclusion that the developer can indeed realize a profit of $531,200.

In contrast, the other options would suggest either a significantly lower profit margin or minimal returns, which would not typically align with expectations for a 20-acre development project in a favorable market. Generally, larger tracts of land, if managed and developed effectively, do yield higher returns, thus reinforcing why $531,200 is the most likely and reasonable potential profit figure in this scenario.