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A photography dealer ordered 60 Model X cameras to be sold for $250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer’s initial cost. What was the dealer’s approximate profit or loss as a percent of the dealer’s initial cost for the 60 cameras?

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Answer:

The correct answer is 13% of profits

Step-by-step explanation:

A photography dealer ordered 60 Model X cameras, Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer’s initial cost

60 cameras - 6 cameras = 56 cameras sold.

We need to calculate the Cost of each camera

  • $250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera.

That means that the cost is 20% + initial cost that is 100%= 120%

Rule of three

$250 ---------- 120%

? ---------- 100%

=($250 x 100) ÷ 120

= $25,000 ÷ 120

= $208.33 cost of each camera

The dealer pays for the 60 cameras:

=$208.33 x 60

= $12,500 was the total amount that the dealer paid for 60 cameras

  • Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer’s initial cost

= $208.33 x 50% = $104.17 returned for each camara

= $104.17 x 6 camaras returned

= $625.00 total returned

We going to calculate the real amount that the dealer paid after the devolution.

= $12,500 - $625.00

= $11,875 was real amount that the dealer paid for the camaras

The dealer sold for $250 each camera, he sold 54

$250 x 54 cameras = $13,500 sells

Now we going to calculate the utillity or gains

$13,500 sells - $11,875 invest

=$13,500- $11,875

= $1,625 total earns, gains, utility

  • What was the dealer’s approximate profit or loss as a percent of the dealer’s initial cost for the 60 cameras?

"$12,500 was the total amount that the dealer paid for 60 cameras"

Rule of three

$12,500 ------------ 100%

$1,625 -------------- ?

=(1,625 x 100) ÷ 12,500

= 162,500 ÷ 12,500

= 13% profit

The dealer’s approximate profit as a percent of the dealer’s initial cost for the 60 cameras is 13%

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