How would you solve this word problem?
Author : llaffer
Submitted : 20180614 04:23:39 Popularity:
Tags: solve word problem
A company purchases 200 VCR units at a price of $220 each. For each order of 200, there is a fee of $25 added as well.
If the company sells each VCR unit at a price marked up 30 percent, what is the profit per unit?
We would have to work on the basis that they sell the entire lot.
Profit has to take account of ALL your costs so that includes the fee.
Each unit costs $220 + 0.125 per unit for the fee.
so to sell at 30 % you would need to add
0.30 x 220.125 = $66.04
....who the hell buys a VCR these days?
So we need to find the total cost and the total revenue, then use that to determine total profit, then determine profit per unit.
200 units costs $220 each with a $25 fee, so:
200 * 220 + 25
44000 + 25
44025
That's the cost. Now the revenue, a 30% mark up of the cost price, times the number of units, so:
(1.3 * 220) * 200
286 * 200
57200
That's the total revenue. The total profit is the difference:
57200  44025
13175
And divide by the number of units to get the profit per unit:
13175 / 200 = $65.88 per unit (rounded to nearest penny)
No one will buy a VCR in 2018, so $0.


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