A trader purchased 1,000 books at the rate of $5.40 per book and spent $200 towards transportation. If he wants to earn a profit

Question

3 years ago

11

of 12.5%, at what price should he sell each book? ( with explanation )

1 answer:

Flauer [41] · Answer 1 · 2022-01-14T20:26:09+03:00

Answer:

$6,300

Step-by-step explanation:

Step 1

Find the Cost Price of the books

A trader purchased 1,000 books at the rate of $5.40 per book

This is calculated as:

If 1 book = $5.40

1000 books = ???

We cross multiply

1000 books × $5.40

= $5,400

He bought 1000 books for $5,400

His total cost price = Transportation + Cost of books

Transportation = $200

Cost price = $5,400 + $200

= $5,600

Step 2

Find the profit he made from the sale of the books

Percentage profit = Profit / Cost price × 100

Percentage profit = 12.5%

Cost price = $5,600

We have :

12.5 = Profit/ $5,600 × 100

12.5 = (100 × Profit)/ $5,600

Cross multiply

12.5 × $5,600 = 100 × Profit

Divide both sides by 100

(12.5 × $5,600) ÷ 100 = Profit

Profit = $700.

Step 3

Find the selling price

The Formula to calculate Selling Price is given as:

Selling price = Cost Price + Profit

Selling price = $5,600 + $700

Selling price = $6,300