Question

An Apple computer store sells computers for $1,198.65. Assuming the computers cost $10,980 per dozen, what is the profit margin?

a) 5%
b) 10%
c) 15%
d) 20%

Answer 1

The profit margin is 30.96%. None of the given options is answer.

Step-by-step explanation:

To calculate the profit margin, we first need to calculate the profit per computer. The profit per computer is the difference between the selling price and the cost per computer. In this case, the selling price is $1,198.65 and the cost per computer is $10,980/12 = $915.

Profit per computer = $1,198.65 - $915 = $283.65

Next, we can calculate the profit margin as a percentage by dividing the profit per computer by the cost per computer and multiplying by 100%.

Profit margin = ($283.65/$915) * 100% = 30.96%

Therefore, the profit margin is approximately 30.96%. None of the given options is answer.