Question

the spirit club buys shirts in bulk for $8 each. they mark up the shirts 25% to sell in the school store. at the end of the year, they sell the shirts for 25% off. how much profit does the spirit club make on each shirt sold at the end of the year?

Answer 1

The cost price of each shirt is $8.

They mark up the shirts 25%, which means they increase the price by (25/100) * $8 = $2.

So, the selling price of each shirt becomes $8 + $2 = $10.

At the end of the year, they sell the shirts for 25% off, which means they reduce the price by (25/100) * $10 = $2.50.

Therefore, the selling price of each shirt after the discount becomes $10 - $2.50 = $7.50.

The profit made on each shirt sold at the end of the year is the difference between the selling price and the cost price, which is $7.50 - $8 = -$0.50.

Since the profit is negative, it means that the Spirit Club is making a loss of $0.50 on each shirt sold at the end of the year.