Question

Can someone help me with this? A man purchased a used car for $1000. He decided t sell the car for 40% above his purchase price. He could not sell the car so he reduced his asking price by 40%. If he sells the car at the reduced price, will he have a profit or a loss or will he break even?

Answer 1

He will be at a loss of $160

Step-by-step explanation:

Here, we want to check if he can get the profit or loss

If the purchase price is $1000, 40% of this is $400, and that makes the initial asking price as $1,400

He was unable to sell and decide to reduce his asking price by 40%

That would be:

`\begin{gathered} \text{ 40\% of \$1400 = \$560} \\ \text{New sales price would be:} \\ 1400-560\text{ = \$840} \end{gathered}`

The difference between the final sales price and the cost price will be:

`840-1000\text{ = -\$160}`

What that simply means is that he will be at a loss of $160