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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

 

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Kirill Z. | Physics, math tutor with great knowledge and teaching skillsPhysics, math tutor with great knowledge...
4.9 4.9 (174 lesson ratings) (174)
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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%

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"% profit on the sale" is also called 17.5% "profit margin" in the biz world
Robert J. | Certified High School AP Calculus and Physics TeacherCertified High School AP Calculus and Ph...
4.6 4.6 (13 lesson ratings) (13)
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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%