George is selling 600 magazines. He sold 50% of them at $10 each, 20% of the remainder at a discount of 30% and the rest at cost price. He made a profit of $2308. Find the cost price of a magazine.
| Price |
$10 |
$7 |
Cost Price |
| Percent |
50% |
50% |
| |
|
10% |
40% |
| Number |
300 |
60 |
Not needed |
| Amount collected |
$3000 |
$420 |
Not needed |
Number of magazines sold at $10
= 50% x 600
=
50100 x 600
= 300
Price after 30% discount
= 70% x 10
=
70100 x 10
= $7
Remaining magazines
= 600 - 300
= 300
Number of magazines sold at $7
= 20% x 300
=
20100 x 300
= 60
Number of magazines sold at $10 or 30% discount
= 300 + 60
= 360
Total amount collected from the sale of 300 magazines
= 300 x 10
= $3000
Total amount collected from the sale of the other 60 magazines
= 60 x 7
= $420
Total amount collected from the sale of magazines sold at $10 or 30% discount
= 3000 + 420
= $3420
Cost price of 360 magazines
= 3420 - 2308
= $1800
Cost price of 1 magazine
= 1800 ÷ 360
= $5
Answer(s): $5
