3 lots, each measuring 75 by 110 feet, $20 per square foot. Sold lots for $200,000 each. What was the % of profit on the sale of the 3 lots

Question

 

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Answer 1

Each lot is 75*110=8250 square feet in area. The cost of each lot is 8250feet²*$20/feet²=$165000

 

If each lot is sold for $200000, then the difference between cost and sale is the profit,

P=$200000-$165000=$35000 

 

The percent from the lot cost is

35000/165000*100≈21.2%

If you calculate the percent from the sale amount, you will get 17.5%

Answer 2

Total cost: 3*75*110*20 = $495,000

Total revenue: 3*200,000 = $600,000

The % of profit = (600,000 - 495,000)/495,000 ≈ 21%