You can make a $2.00 profit on Item A selling for $10.00. If you can sell 50 units of Item A, how much profit will you make?

Question

You can make a $2.00 profit on Item A selling for $10.00. If you can sell 50 units of Item A, how much profit will you make?

 

Answer 1

Since this question asks for YOUR profit made as opposed to the general amount of money made, you must first consider:

 

Item A is sold for $10

You earn $2 for each one that is sold

 

(This means you make $2/$10, or 20% commission)

 

 

 

So if you sell 50 units of Item A, you must do:

 

50 x $10= total amount of money made from sales

50 x $2 =  total amount of YOUR profit made from sales

 

 

50 x 10 = 500

50 x 2 = 100

 

So, in total sales $500 is made from 50 units being sold -- however only $100 is your profit from these sales.

 

 

Another way of solving this or checking your answer:

 

Since you make 20% of total sales, do $500 - 20% which equals $100