Answer:
Lucy's percentage profit = 33.33% based on Sales Value
and 50% based on Cost.
Step-by-step explanation:
a) Calculations:
7kg = 7,000g of nuts
Cost of 7,000g = £10
350g = 20 bags (7,000/350)
Sales value = £15 (20 x 75p)
Profit = Sales value minus Cost
Profit = £5 (£15 - £10)
Profit percentage based on sales = Profit/Sales x 100 = 5/15 x 100 = 33.33%
Profit percentage based on cost = Profit/Cost x 100 = 5/10 x 100 = 50%
b) Profit is the excess of sales over cost. There are two ways to express it in percentages. Profit can be expressed as a percentage of the cost (Markup). It can also be expressed as the percentage of the sales value (Margin).
