Question

Speculator paid $25,000 net each for two 150 front-foot lots. Speculator split them into 3 lots with equal front footage. Speculator sold the 3 lots for $300 per front foot. What was Speculator's percentage of profit?

Answer 1

The answer is 80%

Step-by-step explanation:

Profit = revenue - cost of sales

=[(50* 300) per 50 front-foot lot * 3 lots ] - 25000 *100

=(45000-25000)/25000 *100

=80%