Howard is selling 700 magazines. He sold 50% of them at $5 each, 60% of the remainder at a discount of 20% and the rest at cost price. He made a profit of $2151. Find the cost price of a magazine.
| Price |
$5 |
$4 |
Cost Price |
| Percent |
50% |
50% |
| |
|
30% |
20% |
| Number |
350 |
210 |
Not needed |
| Amount collected |
$1750 |
$840 |
Not needed |
Number of magazines sold at $5
= 50% x 700
=
50100 x 700
= 350
Price after 20% discount
= 80% x 5
=
80100 x 5
= $4
Remaining magazines
= 700 - 350
= 350
Number of magazines sold at $4
= 60% x 350
=
60100 x 350
= 210
Number of magazines sold at $5 or 20% discount
= 350 + 210
= 560
Total amount collected from the sale of 350 magazines
= 350 x 5
= $1750
Total amount collected from the sale of the other 210 magazines
= 210 x 4
= $840
Total amount collected from the sale of magazines sold at $5 or 20% discount
= 1750 + 840
= $2590
Cost price of 560 magazines
= 2590 - 2151
= $2800
Cost price of 1 magazine
= 2800 ÷ 560
= $5
Answer(s): $5
