Question

A merchant paid $3 each for golfing hats that he sold for $4 each. He therefore earned a gross profit of $1 per hat. by what per cent was the cost price increased to provide for this profit

Answer 1

The cost price was increased by 33.33 % to provide this profit

Step-by-step explanation:

Given:

Cost price = $3

Selling price = $4

Gross profit = $1

To Find:

Profit percentage =?

Solution:

Profit Formula calculates the net gains or losses incurred by subtracting total expenses from total sales.

Now profit = 4 - 3 = 1

Now the profit percentage can be found by

=
`( profit * 100)/(costprice)`

=
`( 1 * 100)/(3)`

=
`(100)/(3)`

= 33.33%