Answer:
$6.3
Step-by-step explanation:
Cost of one book = $5.40
cost of 1000 books = 1000* Cost of one book = $5.40*1000 = $5400
Transportation cost for all the books = $200
Thus, total cost for all the books = cost of 1000 books + Transportation cost for all the books = $5400 + $200 = $5600.
Given , trader wants to earn a profit of 12.5%
thus, we find 12.5 % of total cost incurred by trader
12.5 % of total cost incurred by trader = 12.5/100 * $5600. = $700
Thus, total profit for 1000 books will be $700
we know that
selling price = cost price + profit
therefore, in the given problem
selling price for 1000 books = total cost for 1000 books + total profit
substituting the value as calculated above
selling price for 1000 books = $5600 + $700 = $6300
To find selling price for one book, lets divide LHS and RHS by 1000
selling price for 1000/100 books = $6300/1000 = $6.3
Thus, trader should sell each book at $6.3 to earn a profit of 12.5%.
