Final answer:
To make a 40% profit on the CDs, Lebo needs to first calculate the cost per CD after a 5% discount and then add 40% to this cost to determine the selling price per CD.
Step-by-step explanation:
Lebo buys blank writable CDs in bulk and gets a discount. He wants to sell them individually to make a profit. First, we calculate the total cost Lebo pays after the discount. He receives a 5% discount on R40, so the cost is R40 - 5% of R40. Then to find out how much he must sell each CD to achieve a 40% profit, we add 40% profit margin to the cost per CD and round if necessary to get the selling price per CD.
The calculation steps are as follows:
Calculate the discount amount: 5% of R40 = R2.
Subtract the discount from the initial cost: R40 - R2 = R38 for 50 CDs.
Calculate the cost per CD: R38 / 50 = R0.76 per CD.
Calculate the selling price per CD including 40% profit: R0.76 + 40% of R0.76.
After calculating the selling price per CD including the profit, Lebo will know at what price to sell the CDs.