A textbook costs a bookstore $69, and the store sells it for $86.25. Find the rate of profit based on the selling price.

Answer 1

If the book costs $69, and the store sells it for $86.25 then we know

Revenue = $86.25

Cost = $69

We also know, in general:

Profit = Revenue - Cost

Profit = $88.25 - $69 = $19.25 per book

This would represent a rate of profit of 19.25/69 = 0.27899 = 27.899%.