Question

An industrial fertilizer costing $370 per tonne to produce is sold retail 61 cents per kilogram.If there is a wastage of 2.5%,find the profit as a percentage of the cost?

Answer 1

cost = 370
because of the 2.5% loss due to wastage, they only sold 97.5% of the fertilizer

return = .975(1000)(.61) = 584.75
profit = 224.75
Percentage profit = 224.75/370 = appr 60.7 %

Answer 2

First, you look at the cost for the production of the fertiliser, which is $370.

Then, you need to find the profit. To do this, you have to consider the 2.5% loss due to wastage. 100%- 2.5%= 97.5%.

Convert this into a fraction- 0.975, and make the units to the same: into tonnes. This is done by multiplying the 61 cents ($0.61) by 1000 (as 1000kg makes a tonne.

The equation: 0.975 * 1000 * 0.61. This equals to $594.75.

The profit is the amount gained. To find this, you subtract the production cost from the retail price. Therefore, 594.75- 370 = $224.75.

Lastly, to find the profit as a percentage of the cost, you put the profit over the cost as a fraction (224.75/370). 224.75 / 370= 0.6074324324.

Furthermore, convert the fraction to a percentage to a standard 2 decimal places. This equates to 60.74%.

Therefore, the profit as a percentage of the cost is 60.74%.