A tailor buys fabric and thread costing £45 in total to make a wedding guest dress by hand, then sells the finished dress to a customer for £63 at the works...
Question 1 Report
A tailor buys fabric and thread costing £45 in total to make a wedding guest dress by hand, then sells the finished dress to a customer for £63 at the workshop counter.
Work out the tailor's percentage profit on the dress. (3)
Answer Details
Percentage profit compares the profit made with the cost price, since profit is defined relative to how much was originally spent on the fabric and thread.
The profit on the dress is:
\[63 - 45 = \pounds 18\] [1 mark]
Expressed as a percentage of the £45 cost price:
\[18 \div 45 \times 100\] [1 mark]
\[= 40\%\] [1 mark]
The cost price of £45, not the selling price of £63, is the correct denominator, since percentage profit always measures the gain relative to what the tailor originally spent.
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