A photography dealer ordered 60 Model X cameras to be sold for $250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of : Crackverbal Support

A photography dealer ordered 60 Model X cameras to be sold for $250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer f Print

Modified on: Tue, 12 Oct, 2021 at 12:31 PM

Concept: The question tests on the application of Profit/Loss Concepts.

Solution:

It is given that for every 60 cameras 54 make a profit and 6 make a loss.

=> 54/60 =9/10 cameras contribute to profit whereas 1/10 contributes to a loss.

Let there be 10 cameras priced at $10 each

=>Total investment =10*10=100$

Total profit =(20% of 10)*9 =18$

Total loss = (50% of 10)*1 =5$

Hence effective profit = 18-5 =13 $

Profit% = Profit/CP(Investment)*100

= 13/100)* 100 =13 % profit. (Option D)

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A photography dealer ordered 60 Model X cameras to be sold for $250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer f Print

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