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Profit and Loss - February 21, 2005
The question for the day is a Math Problem Solving question in Arithmetic from the topic Profit and Loss.
Question
Sam buys 10 apples for $1. At what price should he sell a dozen apples if he wishes to make a profit of 25%?
A. $0.125
B. $1.25
C. $0.25
D. $1.5
E. $1.8
The correct choice is (D) and the correct answer is $1.5 .
Explanatory Answer
The cost price of 1 apple = 
th of a dollar or $0.10.
As Sam wishes to make a profit of 25%, his selling price per apple will be 0.10 + 25% of 0.10
= $0.125.
If the selling price of 1 apple is $0.125, then the selling price of a dozen apples = 12*0.125
= $1.5
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