Question

The inhabitants of a small island export a cloth made from a plant that grows only on their island. A clothier from New York, believing that he can save money by "cutting out the middleman," decides to travel to the island and buy the cloth himself. Ignorant of the local custom where strangers are offered outrageous prices initially, the clothier accepts (much to everyone's surprise) the initial price of 400 tepizes/m^2. The price of this cloth in New York is 120 dollars/yard^2. If the clothing maker bought 500 m^2 of this fabric, how much money did he lose? Use 1tepiz= 0.625dollar and 0.9144m = 1yard.

Answer 1

Step-by-step explanation:

purchase price = 400 tepizes / m²

1 tepiz = .625 dollar

purchase price in terms of dollar = 400 x .625 dollar / m²

= 250 dollar / m²

.9144 m = 1 yard

1 m = 1.0936 yard

1m² = 1.196 yard²

price in terms of dollar / yards²

= 250 / 1.196 dollar / yard²

= 209 dollar / yard²

Price of cloth in New York = 120 dollar / yard²

loss = 209 - 120 = 89 dollar / yard²

500 m² = 500 x 1.196 yard²

= 598 yard²

net loss in purchasing 500 m² cloth

= 598 x 89

= 53222 dollar .