A car dealer purchased 2 cars, one for $1500 and the other for $20000, He then sold the first car at a loss of 14% and the second car for a profit of 15%. Find the dealer¡¯s profit for the whole transaction and express the answer as a percentage of his total cost.
I assume you meant 15000, not 1500.
cost = 15000 + 20000 = 35000
sales: 15000*.86 + 20000*1.15 = 35900
profit = 900 = 2.57% of 35000
To find the dealer's profit for the whole transaction, we need to calculate the profits and losses individually for each car and then calculate the total profit.
First, let's find the profit or loss for each car:
For the first car, which was purchased for $1500 and sold at a loss of 14%, we need to calculate the loss amount. Loss percentage can be calculated by multiplying the cost by the loss percentage and dividing by 100.
Loss amount for the first car = (14/100) * $1500 = $210
So, the selling price of the first car = $1500 - $210 = $1290
For the second car, which was purchased for $20000 and sold at a profit of 15%, we need to calculate the profit amount.
Profit amount for the second car = (15/100) * $20000 = $3000
So, the selling price of the second car = $20000 + $3000 = $23000
Now, let's calculate the total cost of both cars:
Total cost = Cost of first car + Cost of second car = $1500 + $20000 = $21500
And let's calculate the total selling price of both cars:
Total selling price = Selling price of first car + Selling price of second car = $1290 + $23000 = $24290
Now, let's find the dealer's profit for the whole transaction:
Profit = Total selling price - Total cost = $24290 - $21500 = $2790
Finally, let's calculate the dealer's profit as a percentage of his total cost:
Profit percentage = (Profit / Total cost) * 100 = ($2790 / $21500) * 100
Profit percentage = 12.98%
Therefore, the dealer's profit for the whole transaction is 12.98% of his total cost.