A company makes Poppy Lapel Pins.
Each of them costs £1.10 to make.
In October it made 1000 lapel pins.
35% of them are given to charities.
The rest are sold in two formats: 60% of them at £3.00 each
40% of them at £5.00 for 2
Assuming that all the lapel pins will be sold by the end of November,
work out the percentage profit the company should make.
Give your answer to 1 decimal place.
Answers
Answer:
Ok, so we know it costs $1.10 to make a pin, so the cost of making all 1000 pins must have been:
1.10 \times 1000 = 1100
We know that 35% of the pins, hence 350 pins, were given to charity (we assume this means donated for free), and so the company sold 650 pins.
60% of these we sold at $3 each;
0.60 \times 650 = 390
So 390 pins sold at $3 each comes to
390 \times 3 = 1170
So the company has already made $1170.
The other 40% of the 650 remaining pins (260 pins) were sold at $5 for 2. We assume from the question that they were only sold in pairs and were all sold, so we can essentially figure out that 130 pairs were sold at $5 each;
130 \times 5 = 650
So the company has sold the pins for $650 + $1170 = $1820
This means that the company has made
$1820 - $1100 = $720 as profit
So the percentage profit earned (profit/cost times 100%) would be
\frac{720}{1000} \times 100 = 65.4545....
Which to one decimal place is 65.5% profit.
Hope this helped.
Given: A company makes Poppy Lapel Pins. Each of them costs £1.10 to make. In October it made 1000 lapel pins. 35% of them are given to charities. The rest are sold in two formats: 60% of them at £3.00 each and 40% of them at £5.00 for 2. Assume that all the lapel pins will be sold by the end of November.
To find: Percentage profit of the company
Solution: Cost of making pins= £1.10
Number of pins= 1000
Total cost for making the pins
= Cost of each pin × Number of pins
= £1.10 × 1000
= £1110
Percentage of pins sold in charities
= 35% of 1000 pins
= (35/100) × 1000
= 350 pins
Left pins= 1000-350 = 650 pins
Number of pins sold at £3.00:
= 60% of 650
= (60/100) × 650
= 390
Selling price of these 390 pins
= 390 × £3.00
= £1170
Number of pins sold at £5.00 for 2:
= 40% of 650
= (40/100) × 650
= 260
These 260 pins were sold in pairs for £5.
Therefore, number of pairs sold
= 260/2
= 130 pairs
Selling price of these 130 pairs of pins
= 130 × £5.00
= £650
Therefore, total selling price
= £1170 + £650
= £1820
Profit by company
= Selling price - Cost price
= £1820 - £1110
= £710
Profit percentage
= Profit × 100 / Total cost price
= 710 × 100 / 1110
= 71000/1110
= 63.9%
Therefore, the percentage profit of the company is 63.9%.