mike knits and sells them for $36 at the street fair every other week. it costs him about $19 for the yarn for each scarf and $8 for the other decorations he uses on them.mike estimates that he makes about 75% profit on each scarf he sells. is mike's estimate correct ?
Cost = 19 + 8 = $27.
S = 27 + r*27 = 36.
27r = 36-27 = 9.
r = 9/27 = 0.333 = 33.3% Profit.
Therefore, Mike is incorrect.