Ahead of a busy local festival weekend, a shopkeeper buys a box of 60 scented candles for $54 to sell in her corner shop, pricing each candle at $1.20. Work...
Question 1 Report
Ahead of a busy local festival weekend, a shopkeeper buys a box of 60 scented candles for $54 to sell in her corner shop, pricing each candle at $1.20.
- Work out the total amount received from selling all 60 candles. (1)
- Work out the profit made on the whole box of candles. (2)
- Work out the profit as a percentage of the $54 cost price. (2)
Answer Details
Profit is the amount received from selling stock minus what it cost to buy, and profit as a percentage compares that profit to the original cost price using \(\dfrac{\text{profit}}{\text{cost price}} \times 100\).
- \(60 \times 1.20 = 72\), so \(\$72\) is received from selling all 60 candles. [1 mark]
- Profit \( = 72 - 54 = \$18\). [2 marks]
- \(\dfrac{18}{54} \times 100 = 33.33\ldots\%\), which rounds to \(33.3\%\) (3 s.f.). [2 marks]
Percentage profit is always calculated against the cost price, not the selling price; using \(\$72\) as the base instead of \(\$54\) would give a different, incorrect percentage (\(25\%\)), because the two prices are not interchangeable in this formula.
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