Answer:
$2.9 is the profit per item.
Explanation:
we have given information as below:
there are total 2% items which are faulty
That means 98% are non-faulty.
Since, he has to pay $100 on faulty items that means loss he is facing is

Now, he is getting profit of $5 on non-faulty items that means

Net profit= profit - loss on repairing the items =4.90-2=2.9
Hence, $2.9 is the net profit per item.