Multiple choice

A manufacturer manufactures smartphones of two different brands, A and B. The cost of manufacturing the brand A smartphone is \$200, while the cost of manufacturing the brand B smartphone is \$350. The manufacturer sets the price of the brand A smartphone 50% higher than its manufacturing cost; similarly, he sets the price of the brand B smartphone 30% higher than its manufacturing cost. While selling, the manufacturer offers a 15% discount on the brand A smartphone and a 10% discount on the brand B smartphone. Calculate the overall profit on one smartphone of brand A and one smartphone of brand B.

  1. $111.5
  2. $114.5
  3. $124.5
  4. $134.5
  5. $144.5
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Brand A: Cost = 200, Price = 300, Discounted SP = 300 * 0.85 = 255. Profit = 55. Brand B: Cost = 350, Price = 455, Discounted SP = 455 * 0.9 = 409.5. Profit = 59.5. Total Profit = 55 + 59.5 = 114.5.

AI explanation

First, find the marked prices by adding the percentage increases to the manufacturing costs: brand A is 200 x 1.50 = 300 and brand B is 350 x 1.30 = 455. Next, apply the respective discounts to find the final selling prices: brand A sells for 300 x 0.85 = 255 and brand B sells for 455 x 0.90 = 409.5. The total selling price is 664.5, and subtracting the total manufacturing cost of 550 gives an overall profit of 114.5.

Keep practicing — related questions