Question

A merchant paid $3 each for golfing hats that he sold for $4 each. He therefore earned a gross profit of $1 per hat. by what per cent was the cost price increased to provide for this profit

Answer 1

Answer:

The cost price was increased by 33.33 % to provide this profit

Explanation:

Given:

Cost price =  $3

Selling price  = $4

Gross profit  = $1

To Find:

Profit percentage =?

Solution:

Profit Formula calculates the net gains or losses incurred by subtracting total expenses from total sales.

Now profit  = 4 - 3 = 1

Now the profit percentage can be found by

=$\frac{ profit \times 100}{costprice}$

=$\frac{ 1 \times 100}{3}$

=$\frac{100}{3}$

=  33.33%