Question

2. Marty and Irene Benefield purchased 400 shares of airline stockyears ago. They paid a total of $8,484.55 for the stock. Lastweek they sold the stock for $19.50 per share and paid an onlinecommission of $19.95.a. What was the amount of the sale?b. What was the net sale?c. What was the profit or loss?

Answer 1

Step 1:

Find the cost per share

`\begin{gathered} Cost\text{ per share = }(8484.55)/(400) \\ =\text{ \$21.211375} \end{gathered}`

Selling price = $19.5

`Total\text{ selling price = 400 }*\text{ \$19.50 = \$7800}`

a)

Amount of sale = $7800

b)

Net sale = Amount of sale - Commission

`\begin{gathered} Net\text{ sale = \$7800 - \$19.95} \\ =\text{ \$7780.05} \end{gathered}`

c) Amount paid = $8484.55

Net sale = $7780.05

Since net sale is less than the amount paid, hence, it is loss

Loss