Question

Bill buys and sells laptops. Last month Bill bought 50 laptops. He paid £400 for each laptop. He sold 40 of these laptops at a profit of 30% on each laptop and 10 of these laptops at a profit of 15% on each laptop. Bill’s target last month was to sell all 50 laptops for a total of at least £25 000. Did Bill reach this target?

Answer 1

As Bill's sales is £25400, which is greater than £25000, he achieved his target.

Explanation:

Cost of each laptop = £400

lets calculate for 40 laptops first

Given, he sold 40 of these at 30% profit

30% of cost price = 30% of £400 = 30/100 * 400 = 120

Therefore, selling price of these laptops = £400 + £120 = £520

Total sales generated from selling 40 of these laptop = 40*£520

= £520 =£20,800

lets calculate for 10 laptops now

Given, he sold 10 of these at 15% profit

15% of cost price = 15% of £400 = 15/100 * 400 = 60

Therefore, selling price of these laptops = £400 + £60 = £460

Total sales generated from selling 10 of these laptop = 10*£460

= £4600

Total sales generated from selling all the 50 laptop =

Total sales generated from selling 40 of these laptop + Total, sales generated from selling 10 of these laptop = £20,800 + £4600 = £25,400

Target for Bill = £25000

As his sales is £25400, which is greater than £25000, he achieved his target.