Multiple choice

Selling price of a certain product is \$24. For each unit of the product sold, the manufacturer receives \$4.80 as profit. What percent of the selling price does the manufacturer receive as profit?

  1. 20%

  2. 5%

  3. 2%

  4. 0.5%

  5. 0.2%
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A Correct answer
Explanation

Profit percentage = (Profit / Selling Price) * 100. (4.80 / 24) * 100 = 0.2 * 100 = 20%.

AI explanation

Using the formula for profit percentage on selling price, we divide the profit by the selling price and multiply by 100. This gives 4.80 divided by 24, which equals 0.20. Multiplying by 100 gives a profit of 20 percent.

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