Question

olivia is selling potted plants and is making a 60% profit on each sale. she sells each potted plant for £4.80. if olivia wants to make a 70% profit on each sale instead, how much should she sell each potted plant for? give your answer in pounds to the nearest 1p

Answer 1

To achieve a 70% profit margin, Olivia should sell each potted plant for £5.10. This was calculated by first finding the cost price from a 60% profit margin and then applying the desired 70% profit margin to that cost price.

Step-by-step explanation:

To calculate the new price at which Olivia should sell each potted plant to make a 70% profit instead of 60%, we first need to determine her cost price. The selling price with a 60% profit margin means that the cost price represents 100%, and the added 60% profit makes up the selling price. Therefore, the selling price of £4.80 is 160% of the cost price.

We calculate the cost price as follows:

£4.80 (Selling Price) = 160% of Cost Price

Cost Price = £4.80 / 1.60

Cost Price = £3.00

Next, to find the selling price for a 70% profit, we calculate 170% of the cost price:

New Selling Price = 170% of £3.00

New Selling Price = 1.70 * £3.00

New Selling Price = £5.10

So to make a 70% profit, Olivia should sell each potted plant for £5.10, rounded to the nearest penny.