Question

A company makes poppy lapel pins

Each cost £1.10 to make
In October it made 1000 lapel pins
35% of them are given to charities
60% of them at £3.00 each
40% of them at £5.00 for 2
Assuming that all lapel pins will be sold by the end of November work out the percentage profit the company should make.give answer in 1 decimal point

Answer 1

To find the percentage profit, calculate the cost and revenue. Subtract the cost from the revenue to find the profit. Finally, divide the profit by the cost and multiply by 100% to find the percentage profit.

Step-by-step explanation:

To calculate the percentage profit the company should make, we first need to calculate the total cost of making the lapel pins and the total revenue from selling them.

Cost:

• Cost to make each lapel pin = £1.10
• Total cost to make 1000 lapel pins = £1.10 x 1000 = £1100

Revenue:

• 35% of 1000 lapel pins are given to charities, so the company sells 65% of 1000 lapel pins
• 60% of the lapel pins are sold at £3.00 each, making the revenue from selling 600 lapel pins = £3.00 x 600 = £1800
• 40% of the lapel pins are sold at £5.00 for 2, meaning each pair of lapel pins is sold for £5.00, making the revenue from selling 400 lapel pins = (£5.00/2) x 400 = £1000

Total revenue from selling 1000 lapel pins = £1800 + £1000 = £2800

Profit = Revenue - Cost = £2800 - £1100 = £1700

Percentage profit = (Profit / Cost) x 100% = (£1700 / £1100) x 100% = 154.5%