Question

Toby buys packs of 12 racing cars for R49,99 and sells each racing car for R10 at school

1.1 Determine the cost price per racing car
1.2 calculate the profit toby makes per racing car
1.3 Determine toby's profit margin on one pack 12 racing car
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Answer 1

1.1 R5.83

1.2 R70.01

1.3 58.34%

Explanation:

Given that he buys a pack of 12 racing cars for R49,99 then the unit cost for a car which is the total cost divided by the number of cars in a pack

= R49,99/12

= R4.17

If each car is sold for R10 then the profit made on each car which is the difference between the cost and the selling price

= R10 - R4.17

= R5.83

The profit margin on one pack of 12 racing cars

Profit margin is the ratio of the profit to the total selling price

The total profit (profit on one pack of 12 racing cars)

= R5.83 * 12

=R70.01

Total selling price = R10 * 12

=R120

Margin = R70.01 / R120

= 58.34%