Question

A set of pencils sells for $1.75 and costs $0.40 to make. Twenty percent of the profit (the difference between the purchase price and the amount it costs to make) from each set of pencils goes to a school. If 500 sets are sold, what is the amount of money that will go to the school?

Answer 1

$135

Explanation:

If each set cost $0.40 to make and sells for $1.75, the profit for each pack is $1.35.

To get 20% of this you do the following: 1.35×0.20

20% of $1.35 is $0.27.

If 500 sets of pencil are sold and the school gets $0.27 from each pack sold, you would multiply $0.27 by 500, which would give you the answer $135.