Question

A nursery has $55,000 of inventory in dogwood trees and red maple trees. The profit on a dogwood tree is 29% and the profit on a red maple tree is 18%. The profit for the entire stock is 20%. How much was invested in each type of tree?

Answer 1

On dogwood $45,000 was invested

On red maple tree , $10,000 would be invested

Explanation:

Let the amount invested on dogwood tree be d and the amount invested on red maple be r

Total is 55,000

Thus;

d + r = 55,000 ••••••(i)

Total profit is;

20/100 * 55,000 = 11,000

Profit on dogwood is;

29/100 * d = 0.29d

Profit on red maple is;

18/100 * r = 0.18r

Both equals 11,000

0.29d + 0.18r = 11,000 •••••••(ii)

From equation i, d = 55,000 - r

substitute into ii

0.29(55,000-r) + 0.18r = 11,000

15950- 0.29r + 0.18r = 11,000

4950 = 0.11r

r = 4950/0.11

r = 45,000

d = 55,000 - r

d = 55,000 - 45,000

d = 10,000