Question

Tabitha Robertson bought 80 shares of White Air Lines stock at $13.20 per share. She held the stock for one year and sold it at $45.68. Each transaction has a commission of $27 plus $0.03 per share. What is the profit or loss for the sale?

Answer 1

Answer: $2569.00

Explanation:

Purchase price per share = $13.20

Number of shares = 80

Commission on transaction = $0.03 per share plus $27

Sales prices per share = $45.68

Total Purchase price = ( number of shares × purchase price per share)

Total Purchase price = (80 × $13.20) = $1056.00

Total Sales price = (number of shares × sales price per share)

Total Sales price = (80 × $45.68) = $3654.40

Commission = $27 + (80 × 0.03) = $29.40

Profit or loss = Total Sales price - Total purchase price - commission

Profit or loss = $3654.40 - $1056.00 - $29.40

Profit = $2569.00