Question

Ryan buys some jumpers to sell on a stall.

He spends £130 buying 40 jumpers.
He sells 80% of the jumpers for £12 each.
He then puts the rest of the jumpers on a Buy one get one half price offer.
He manages to sell half the remaining jumpers using this offer.
How much profit does Ryan make?

Answer 1

Answer: £326

Explanation:

Step 1: Calculate the cost per jumper

To find out how much Ryan spent on each jumper, we divide the total cost by the number of jumpers.

`(130)/(40) = 3.25`

This gives us a cost of £3.25 per jumper.

Step 2: Calculate the revenue from selling 80% of the jumpers

Ryan sells 80% of the 40 jumpers, so:

`\text{0.8 x 40 = 32}`

So he sold 32 Jumpers.

He sells each jumper for £12:

`\text{32 x 12 = 384}`

So his revenue from selling these jumpers is £384

Step 3: Calculate the revenue from selling the remaining jumpers on the Buy one get one half price offer

Ryan has 8 jumpers left after selling 80% of them. He puts these on a Buy one get one half price offer, which means that for every jumper sold at full price, he sells another one at half price.

This means that he sells 4 jumpers at full price (£12 each) and 4 jumpers at half price (£6 each).

His revenue from selling these jumpers is:

`\text{(4 x 12) + (4 x 6) = 72}`

Step 4: Calculate the total revenue

Ryan's total revenue is the sum of the revenue from selling 80% of the jumpers and the revenue from selling the remaining jumpers on the Buy one get one half price offer.

This is:

`\text{384 + 72 = 456}`

So Ryan's total revenue is £456

Step 5: Calculate the total cost

Ryan's total cost is the amount he spent on buying the jumpers, which is £130.

Step 6: Calculate the profit

Ryan's profit is the difference between his total revenue and his total cost:

`\text{456 - 130 = 326}`

Therefore, Ryan makes a profit of £326.