A man buys 1000 items at \$3 each. He sells 700 of them at \$4.50 each and the rest at $2.50 each. Find his average profit per item sold.

The total cost for the 1000 items is 1000 times 3, which equals 3000 dollars. The total revenue from selling 700 items at 4.50 dollars and 300 items at 2.50 dollars is 3150 dollars plus 750 dollars, totaling 3900 dollars. The total profit is 3900 dollars minus 3000 dollars, which equals 900 dollars. Dividing this total profit by the 1000 items sold gives an average profit per item of 0.90 dollars.

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