Acme track Incorporated received pairs to be defective and returned

Question

Acme track Incorporated received 360 pairs of Nike running shoes. Each pair sells for 58.00 Acme found 1/9 of the pairs to be defective and returned them. Assuming each pair cost Acme 26.00 what profit did Acme make assuming all nondefective sneakers were sold ?

Answer 1

360 total pairs, but 1/9 are defective.

 

360 * (1/9) = 40. This means 40 were defective and not sold.

 

360-40 = 320. 320 shoes were sold.

 

Profit on 1 shoe: 58-26= 32 (sale price-production price)

Profit on 320 shoes: 32*320= 10,240