Henry is selling 1000 magazines. He sold 50% of them at $10 each, 30% of the remainder at a discount of 30% and the rest at cost price. He made a profit of $2457. Find the cost price of a magazine.
| Price |
$10 |
$7 |
Cost Price |
| Percent |
50% |
50% |
| |
|
15% |
35% |
| Number |
500 |
150 |
Not needed |
| Amount collected |
$5000 |
$1050 |
Not needed |
Number of magazines sold at $10
= 50% x 1000
=
50100 x 1000
= 500
Price after 30% discount
= 70% x 10
=
70100 x 10
= $7
Remaining magazines
= 1000 - 500
= 500
Number of magazines sold at $7
= 30% x 500
=
30100 x 500
= 150
Number of magazines sold at $10 or 30% discount
= 500 + 150
= 650
Total amount collected from the sale of 500 magazines
= 500 x 10
= $5000
Total amount collected from the sale of the other 150 magazines
= 150 x 7
= $1050
Total amount collected from the sale of magazines sold at $10 or 30% discount
= 5000 + 1050
= $6050
Cost price of 650 magazines
= 6050 - 2457
= $6500
Cost price of 1 magazine
= 6500 ÷ 650
= $10
Answer(s): $10
