kobel51 wrote:A shipment of 1,500 heads of cabbage, each of which was approximately the same size, was purchased for $600. The day the shipment arrived, 2/3 of the heads were sold, each at 25 percent above the cost per head. The following day the rest were sold at a price per head equal to 10 percent less than the price each head sold for the day before. What was the gross profit on this shipment?
A) $100
B) $115
C) $125
D) $130
E) $135
Any useful shortcuts?
Since we need to calculate the profit for the ENTIRE shipment, we can plug in an EASIER VALUE for the number of heads.
Let the number of heads = 3.
Since the cost of the entire shipment is $600, the cost per head = 600/3 = $200.
2/3 of the heads were sold, each at 25 percent above the cost per head:
For these 2 heads, the selling price per head = 200 + (1/4)(200) = 250.
Profit per head = 250 - 200 = 50.
Total profit = 2*50 = 100.
The following day the rest were sold at a price per head equal to 10 percent less than the price each head sold for the day before.
Selling price for the 1 remaining head = 250 - (1/10)(250) = 225.
Profit = 225-200 = 25.
Total profit for all 3 heads = 100+25 = 125.
The correct answer is
C.
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