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A photography dealer ordered 60 Model X cameras to be sold f
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18 May 2020, 05:17
18 May 2020, 05:17
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A photography dealer ordered 60 Model X cameras to be sold for $250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer’s initial cost for the 60 cameras?
A. 7% loss
B. 13% loss
C. 7% profit
D. 13% profit
E. 15% profit
A. 7% loss
B. 13% loss
C. 7% profit
D. 13% profit
E. 15% profit
Re: A photography dealer ordered 60 Model X cameras to be sold f
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18 May 2020, 05:30
18 May 2020, 05:30
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Re: A photography dealer ordered 60 Model X cameras to be sold f
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18 May 2020, 05:38
18 May 2020, 05:38
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Carcass wrote:
A photography dealer ordered 60 Model X cameras to be sold for $250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer’s initial cost for the 60 cameras?
A. 7% loss
B. 13% loss
C. 7% profit
D. 13% profit
E. 15% profit
A. 7% loss
B. 13% loss
C. 7% profit
D. 13% profit
E. 15% profit
It's important to recognize that we really don't need to use the information about the cameras selling for $250 each. The question boils down to . . .
54 cameras were sold at a 20% markup, and 6 cameras were (essentially) sold at a 50% markdown. What was the approximate profit or loss as a percent of the dealer’s initial cost for all 60 cameras?
So, we can assign A NICE value of $100 to the initial cost per camera.
This means the 60 cameras cost $6000 to buy.
54 cameras were sold at a 20% markup and 6 cameras were sold at a 50% markdown.
So, 54 cameras were sold for $120, and 6 cameras were sold for $50.
(54)($120) + (6)($50) = $6780
So, the cameras were sold for $6780
This represents a profit of $780 (eliminate A and B)
If the initial cost was $6000, we must determine the percentage equivalent to $780/$6000
$780/$6000 = 78/600 = 13/100 = 13%
Answer: D
Cheers,
Brent
