A car dealership sold two cars: the first car at a 10% profit and the second car at a 10% loss, ...
A car dealership sold two cars: the first car at a 10% profit and the second car at a 10% loss, which gave them an overall profit margin of 5% from these two sales. If the dealership's total profit was $1000, what was the sale price of each car?
Answer/Solution
$15,000 and $5,000
Steps/Work
lets denote cost of Car1 as c1 and cost car2 as c2 respectively.
overall sale resulted in a profit of 5%
=> profit from first sale - loss from second sale still yielded in overall 5% profit
=> (10/100)c1 - (10/100)c2 = (5/100)(c1+c2)
=> c1 = 3c2 ----equation 1
Overall profit = 1000
=>(5/100)(c1+c2) = 1000
=> c1+c2 = 20000------equation 2
from 1 and 2 we can find out values of c1 and c2.
c2=5000
c1 = 15000
Answer is D.
overall sale resulted in a profit of 5%
=> profit from first sale - loss from second sale still yielded in overall 5% profit
=> (10/100)c1 - (10/100)c2 = (5/100)(c1+c2)
=> c1 = 3c2 ----equation 1
Overall profit = 1000
=>(5/100)(c1+c2) = 1000
=> c1+c2 = 20000------equation 2
from 1 and 2 we can find out values of c1 and c2.
c2=5000
c1 = 15000
Answer is D.