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 pencil goes to a school. If 500 set are sold, what is the amount of money that will go to the school.

Answer 1

$135

Explanation:

The profit is the revenue (selling price) - cost

Here, selling price per set is $1.75

Cost is $0.40

So, profit = 1.75 - 0.40 = $1.35 per set

If 500 set are sold, the total profit is:

500 * 1.35 = $675

20% of this profit (675) will go to school, so we need to find 20% of $675. We first convert the percentage to decimal and multiply with 675. Shown below:

20% = 20/100 = 0.2

0.2 * 675 = $135

Thus,

$135 goes to school