Multiple choice

A shipment of 1500 heads of cabbage, each of which was approximately the same size was purchased for $600.The day the shipment arrived 2/3 of the heads were sold, each at 25% above the cost per head.The following day the rest were sold at a price per head equal to 10% less than the price each head sold for the day before.what was the gross profit on this shipment?

  1. $100
  2. $115
  3. $125
  4. $130
  5. $135
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Cost per head = 600 / 1500 = 0.4. Day 1: 1000 heads sold at 0.4 * 1.25 = 0.5. Revenue = 500. Day 2: 500 heads sold at 0.5 * 0.9 = 0.45. Revenue = 225. Total Revenue = 725. Profit = 725 - 600 = 125.

AI explanation

The cost per head is 600 divided by 1500, which is \$0.40. The first day, 1000 heads are sold at a 25% profit, so the selling price is 1.25 times 0.40, equaling \$0.50 per head, yielding \$500. The second day, the remaining 500 heads are sold at 10% less than \$0.50, which is \$0.45 per head, yielding \$225. The total revenue is 500 plus 225, equaling \$725, and the gross profit is 725 minus the 600 cost, which is \$125.

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