A car dealer purchases 40 new cars at 6,500 each. He sold 40% of them at 8,000 each and the rest of them at 9,000 each. What is his total profit?
[40 * 40% * (8000 - 6500)] +
... [40 * (100% - 40%) * (9000 - 6500)]
To calculate the total profit, we need to first calculate the total cost of the cars and the total revenue from selling the cars.
The total cost of the cars is given by:
Total Cost = Number of cars * Cost per car
Total Cost = 40 * $6,500
Total Cost = $260,000
Now, we need to calculate the revenue from selling the cars. 40% of the cars were sold at $8,000 each, so the revenue from selling those cars is:
Revenue from first group = 40% of 40 * 8,000
Revenue from first group = 0.4 * 40 * 8,000
Revenue from first group = $128,000
The remaining 60% of the cars were sold at $9,000 each, so the revenue from selling those cars is:
Revenue from second group = 60% of 40 * 9,000
Revenue from second group = 0.6 * 40 * 9,000
Revenue from second group = $216,000
The total revenue is the sum of the revenue from both groups:
Total Revenue = Revenue from first group + Revenue from second group
Total Revenue = $128,000 + $216,000
Total Revenue = $344,000
Finally, we can calculate the total profit by subtracting the total cost from the total revenue:
Total Profit = Total Revenue - Total Cost
Total Profit = $344,000 - $260,000
Total Profit = $84,000
Therefore, the car dealer's total profit is $84,000.
To calculate the car dealer's total profit, we need to determine the total revenue from selling all the cars and then subtract the total cost of purchasing the cars.
Step 1: Calculate the revenue from selling 40% of the cars at $8,000 each.
- The car dealer purchased 40 new cars at $6,500 each, so the total cost of the cars is 40 * $6,500 = $260,000.
- 40% of 40 cars is (40 * 0.4) = 16 cars.
- The revenue from selling 16 cars at $8,000 each is 16 * $8,000 = $128,000.
Step 2: Calculate the revenue from selling the remaining cars at $9,000 each.
- The remaining cars are 40 cars - 16 cars = 24 cars.
- The revenue from selling 24 cars at $9,000 each is 24 * $9,000 = $216,000.
Step 3: Calculate the total revenue from selling all the cars.
- The total revenue is $128,000 + $216,000 = $344,000.
Step 4: Calculate the total cost of purchasing the cars.
- The total cost is 40 cars * $6,500 each = $260,000.
Step 5: Calculate the total profit.
- The profit is the total revenue minus the total cost: $344,000 - $260,000 = $84,000.
Therefore, the car dealer's total profit is $84,000.