Question

Gail paid a total of $12,000 for stock that was $6 per share. If she sold all her shares for $18,000, how much profit on each share did she make?

A
$9
B
$3
С.
S2000
D
$6.000

Answer 1

$3

Explanation:

Given

Total Cost Price: $12,000

Unit Cost Price= $6

Total Selling Price = $18,000

Required

Determine the profit on each share

First, we need to determine the units of share bought;

Units = Total cost price / Unit Cost Price

`Units = (\$12000)/(\$6)`

`Units = 2000`

Next is to determine the selling price of each share; This is calculated as follows;

Unit Selling Price = Total Selling Price / Units Sold

`Unit\ Selling\ Price = (\$18000)/(\$2000)`

`Unit\ Selling\ Price = \$9`

The profit is the difference between the unit cost price and unit selling price

`Profit = Unit\ Selling\ Price - Unit\ Cost\ Price`

`Profit = \$9 - \$6`

`Profit = \$3`