Multiple choice

A shopkeeper buys 120 smartphones at a cost of \$200 each and marks them for sale at \$250 each. The sale starts on January 1. To boost sales, the shopkeeper offers a 10% discount on the marked price. However, 15 smartphones are found to be defective and sold at half of the marked price after the sale ends. What is the shopkeeper's total profit?

  1. $3,000
  2. $2,500
  3. $2,000
  4. $1,500
  5. $1,000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Cost price is 120 * 200 = 24,000. 105 phones sold at 250 * 0.9 = 225 each (23,625). 15 phones sold at 125 each (1,875). Total revenue = 25,500. Profit = 25,500 - 24,000 = 1,500.

AI explanation

The total cost price is 120 times 200 which equals 24000. The revenue from the 105 non-defective phones is 105 times 225 which equals 23625. The revenue from the 15 defective phones is 15 times 125 which equals 1875, making the total revenue 25500. The profit is 25500 minus 24000 which equals 1500. The marked answer is incorrect because the actual profit is 1500, so the provided correct option matches the result.

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