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Dean paid $24500.00 for 5 PSS gaming consoles to be resold at his shop. He sold the consoles at 40% profit each. A week after the consoles were sold 2 customers returned the consoles because they were faulty and could not be used. Dean refunded the customers. Did Dean still make a profit after the refund?​

User Comedian
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Answer:The result is negative, which means that Dean did not make a profit after the refunds. Instead, he suffered a loss of $4,920.00.

Explanation:

Dean paid $24500.00 for 5 PSS gaming consoles, so the cost of each console was $24500.00/5 = $4900.00.

Dean sold each console at a 40% profit, which means he sold each console for $4900.00 + 40% of $4900.00 = $6860.00.

Therefore, Dean earned a total of 5 consoles x $6860.00 per console = $34,300.00 from selling all the consoles.

However, 2 of the consoles were returned, so Dean refunded 2 x $6860.00 = $13,720.00.

Dean's total profit is then calculated as follows:

Total earnings = $34,300.00

Total expenses (cost of consoles) = $24,500.00

Total refunds = $13,720.00

Dean's profit after the refund can be calculated as follows:

Profit = Total earnings - Total expenses - Total refunds

Profit = $34,300.00 - $24,500.00 - $13,720.00

Profit = -$4,920.00

The result is negative, which means that Dean did not make a profit after the refunds. Instead, he suffered a loss of $4,920.00.

User Xavier Combelle
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