bdsco337 wrote:
Would someone mind explaining this one more thoroughly and explain what I am doing wrong?
Profit margin = (Sales - Cost) / Sales
painting with profit:
1/4 = (2000 - x) / 2000
x = 1500
profit = 500
painting with loss:
-1/4 = (2000 - x)/2000
x = -2500
loss = -500
net = 0
bdsco337we need to find the actual value of price for which it was sold for a profit @25% and loss
25 %:
Case 1 :Price of painting with 25% profit
x*1.25= 2000
=> 2000/1.25= 1600$
Price of painting with loss 25%=2000/.75= 2666$
total invested amount= $ 4266 ( 2666+1600) ; this will be our actual cost at which two paintings were purchased at or say amount invested
total SP= $4000 ( given )
so net gain or loss= SP-CP= 4000-4266= (-) $266, option C
Hope this helps..
Alternatively ; coming to your solution:
Solving using your formula
the formula which you have used :
for profit relation would be
.25= (2000-x)/x
x=1600 $
for loss
.25= (x-2000)/x
x= 2666$
Hope this helps
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