Fabian is selling 1000 magazines. He sold 60% 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 $2491. Find the cost price of a magazine.
| Price |
$5 |
$3 |
Cost Price |
| Percent |
60% |
40% |
| |
|
8% |
32% |
| Number |
600 |
80 |
Not needed |
| Amount collected |
$3000 |
$240 |
Not needed |
Number of magazines sold at $5
= 60% x 1000
=
60100 x 1000
= 600
Price after 40% discount
= 60% x 5
=
60100 x 5
= $3
Remaining magazines
= 1000 - 600
= 400
Number of magazines sold at $3
= 20% x 400
=
20100 x 400
= 80
Number of magazines sold at $5 or 40% discount
= 600 + 80
= 680
Total amount collected from the sale of 600 magazines
= 600 x 5
= $3000
Total amount collected from the sale of the other 80 magazines
= 80 x 3
= $240
Total amount collected from the sale of magazines sold at $5 or 40% discount
= 3000 + 240
= $3240
Cost price of 680 magazines
= 3240 - 2491
= $5440
Cost price of 1 magazine
= 5440 ÷ 680
= $8
Answer(s): $8
