Question

You purchase 259 shares of Sonic Corporation for $24.38 per share. What is the total cost of your purchase? You later sell your shares at the current market price of $22.12. How much money was your profit or loss? Explain how you calculated your answer.

Answer 1

$\sf{\underline{Answer:}}$ Loss = -$585.34

In order to find the total cost of purchase, we can find it, by multiplying the number of the shares, that by the prices per share giving.

$\sf{\underline{That\:is:}}$

$\boxed{\sf{259 \: shares \times \frac{24.38}{share}= Total\:cost}}$

$\sf{\underline{Note:}}$ Here share-share gets cancelled.

$\sf{\underline{So:}}$

$\boxed{\sf{259 \times 24.38 = 6314.42}}$

$\sf{\underline{Therefore:}}$ Total cost = $6314.42

$\sf{\underline{Now:}}$

In order to find what was made by selling the 259 shares at $22.12, we can follow the same calculations.

$\sf{\underline{That\:is:}}$

$\boxed{\sf{259 \: shares \times \frac{22.12}{share}}}$

$\sf{\underline{Note:}}$ Here share-share gets cancelled.

$\boxed{\sf{259 \times 22.12 = 5729.08}}$

$\sf{\underline{Therefore:}}$ Earned = $5729.08

We know that, the profit is found by subtracting what you paid from what you made.

$\sf{\underline{Note:}}$ Same concept for loss as well.

$\boxed{\sf{5729.08 - 6314.42 = - 585.34}}$

$\sf{\underline{Answer:}}$ -$585.34

$\sf{\underline{Note:}}$ Since, we get the answer in negative, it indicates that you lost $585.34 on the transaction.

Answer 2

Answer:

Step-by-step explanation: