Question

A company makes Poppy Lapel Pins. each of them costs £1.10 to make. In October it made 1000 lapel pins. 35% of them are given to charities. The rest of them are sold in two formats: 60% of them at £3.00. 40% of them at £5.00 for 2 Assuming that all the lapel pins will be sold by the end of November, work out the percentage profit the company should make give your answer to 1 decimal place

Answer 1

65.5%

Explanation:

The total cost of making 1000 lapel pins is:

Cost = 1000 * £1.10

= £1100

Out of these, 35% of the lapel pins are given to charities. So, the number of lapel pins that will be sold is:

Number of lapel pins for sale = 1000 - 35% of 1000

= 1000 - 350

= 650

60% of these lapel pins are sold at £3.00 each. So, the revenue from selling these lapel pins is:

Revenue from selling 60% of the lapel pins = 60% of 650 * £3.00

= 390 * £3.00

= £1170

40% of the remaining lapel pins are sold at £5.00 for 2. This means that for every 2 lapel pins sold, the revenue is £5.00. So, the revenue from selling these lapel pins is:

Revenue from selling 40% of the lapel pins = 40% of 650 / 2 * £5.00

= 130 * £5.00

= £650

The total revenue from selling the lapel pins is:

Total revenue = Revenue from selling 60% of the lapel pins + Revenue from selling 40% of the lapel pins

= £1170 + £650

= £1820

The profit is the difference between the revenue and the cost of making the lapel pins. So, the profit is:

Profit = Total revenue - Cost

= £1820 - £1100

= £720

The percentage profit is the profit as a percentage of the cost, multiplied by 100. So, the percentage profit is:

Percentage profit = (Profit / Cost) * 100

= (£720 / £1100) * 100

= 65.45%

Therefore, the company should make a percentage profit of 65.5%.