Question

A manufacturer spends $12000 in parts to build a car, they then go and sell that car for $25000. What percentage of profit did they make?

Answer 1

52%

Explanation:

Step one

In this problem we we have to calculate the profit made after spending a certain amount on the car

Step two

Given that he spent $12000 for parts

And he sold the car for $25000

The profit made is

=Cost of car - cost of repair

= 25,000-12,000

=$13,000

The profit made is $13,000

Step three

Using the cost of the car and the profit realized we can calculate the percentage of the profit made

= (13,000/25,000)*100

= 0.52*100

=52%

Answer 2

108.3%

Explanation:

The manufacturer spends $12,000 in buying the car parts and sells the car for $25,000

Selling price= $25,000

Cost price=$12,000

Gain= selling price-cost price

= 25000-12000

= $13000

The percentage profit can be calculated by applying the formular below

Profit= Gain/cost price×100/1

=13000/12000×100/1

=1.083×100

= 108.3%

Hence the percentage profit is 108.3%