Final answer:
To calculate the developer's percentage of profit, divide the total revenue by the total cost and multiply by 100. The developer's percentage of profit is 68%.
Step-by-step explanation:
To calculate the developer's percentage of profit, we first need to determine the total cost of the two 135-front-foot lots. The developer purchased each lot for $22,900 net, so the total cost is 2 * $22,900 = $45,800.
Next, the developer divided the lots into three equal front footage lots, so each lot has a front footage of 135/3 = 45 feet.
The developer then sold the lots for $230 per front foot. Since each lot has a front footage of 45 feet, the selling price of each lot is 45 * $230 = $10,350.
To calculate the profit, we subtract the total cost from the total revenue: $10,350 * 3 - $45,800 = $31,050.
Finally, we calculate the profit percentage by dividing the profit by the total cost and multiplying by 100: $31,050 / $45,800 * 100 = 67.81%. Rounding to the nearest whole percentage point, the developer's percentage of profit is 68% (option 5).