1. If a manufacturing company sells a shirt for $15 to its distributors and the distributor sells it for $40, the distributor makes $25 in profit. What is the rate of return?
A. 1.5
B. .30
C. .900
D. 1.666
My answer is D.
2. You decide to go shopping with your friends to buy a new DVD. If the price of the DVD is $24.99 and the cost to the store is $14.50, what is the markup?
A. $10.49
B. $11.69
C. $14.00
D. $9.99
My answer is A.
Both are right.
Thank you.
For the first question, the rate of return can be calculated by dividing the profit by the cost price. The profit is $25, and the cost price is $15.
Rate of return = Profit / Cost price
Rate of return = $25 / $15
Rate of return ≈ 1.6667
So, the correct answer is D) 1.666
For the second question, the markup can be calculated by subtracting the cost price from the selling price. The selling price is $24.99, and the cost price is $14.50.
Markup = Selling price - Cost price
Markup = $24.99 - $14.50
Markup = $10.49
So, the correct answer is A) $10.49.
For question 1, to find the rate of return, we need to calculate the profit percentage.
To do this, we divide the profit by the cost price and multiply by 100.
Profit = Selling Price - Cost Price
Profit = $40 - $15 = $25
Rate of Return = (Profit / Cost Price) * 100
Rate of Return = ($25 / $15) * 100
Rate of Return = 166.67%
However, the given answer options are in decimal form, so we need to convert the rate of return to decimal form.
To do this, we divide the rate of return by 100.
Rate of Return (Decimal) = Rate of Return / 100
Rate of Return (Decimal) = 166.67% / 100
Rate of Return (Decimal) = 1.6667
Thus, the correct answer is D.
For question 2, to find the markup, we subtract the cost price from the selling price.
Markup = Selling Price - Cost Price
Markup = $24.99 - $14.50 = $10.49
Thus, the correct answer is A.
Well done! Your answers are correct.