kevincan
EverCool purchased several portable air conditioners and sold 4/5 of them in June at the recommended retail price of $800. In July, it sold the remaining units at a 30% discount.
If EverCool’s average profit was $20 per air conditioner, what would the average profit per air conditioner have been if 9/10 of the units had been sold at the recommended retail price and the remaining units at a 30% discount?
A. $36
B. $40
C. $44
D. $48
E. $56
Let the total number of units be 10x.
Sold (4/5) of 10x = 8x in June at the retail price of $800.
Revenue = 8x * $800 = $6400x.
(1/5) of 10x = 2x is July is sold at discounted price = 70%*(800) = $560
Revenue = $560*2x = $ 1120x.
Total revenue = $6400x + $1120x = $7520x
Given the average profit is $20. Thus, total profit = $20 * 10x = $200x.
Excluding profit, the revenue = $7520x - $200x = $7320x.
Case 2:
(9/10) of 10x = 9x is sold at Retail price = 9x * $ 800 = $7200x.
(1/10) of 10x = x is sold at $560 = $560x.
Total revenue = $7760x.
Profit in second case = $7760x - $7320x = $440x
Average profit = $440x / 10x =
$44. Option C