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2 votes
Lebo buys blank writable CDs in bulk. He repackages them and sells them

Individually. He pays R40,00 cash (including VAT) for 50 CDs. He receives a 5%
discount. For how much must he sell each CD to make a 40% profit?
5. Musa buys a new radio for R125,00 excluding VAT. He pays cash and gets a 5
cash discount. How much will he pay in total including VATS
15%100 x 5,00​

2 Answers

7 votes

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.

User Saturnix
by
3.4k points
5 votes

Answer:

  1. He must sell each CD for R1,10 to make 40% profit

Step-by-step explanation:

R40×5%=2

R40-2=R38

40%×38=R15,2

15,2+40=55,2

55,2÷50=R1,10

i didnt do the radio sum...

User AnjoMan
by
3.4k points