Tom is selling 1100 novels. He sold 75% of them at $5 each, 20% of the remainder at a discount of 40% and the rest at cost price. He made a profit of $2487. Find the cost price of a novel.
| Price |
$5 |
$3 |
Cost Price |
| Percent |
75% |
25% |
| |
|
5% |
20% |
| Number |
825 |
55 |
Not needed |
| Amount collected |
$4125 |
$165 |
Not needed |
Number of novels sold at $5
= 75% x 1100
=
75100 x 1100
= 825
Price after 40% discount
= 60% x 5
=
60100 x 5
= $3
Remaining novels
= 1100 - 825
= 275
Number of novels sold at $3
= 20% x 275
=
20100 x 275
= 55
Number of novels sold at $5 or 40% discount
= 825 + 55
= 880
Total amount collected from the sale of 825 novels
= 825 x 5
= $4125
Total amount collected from the sale of the other 55 novels
= 55 x 3
= $165
Total amount collected from the sale of novels sold at $5 or 40% discount
= 4125 + 165
= $4290
Cost price of 880 novels
= 4290 - 2487
= $1760
Cost price of 1 novel
= 1760 ÷ 880
= $2
Answer(s): $2
