Question

If 35 chairs were purchased for R150 each and sold at a mark-up of 25%, the total profit will be___

A. 37,50
B. 3750
C. 937,50
D. 4687,50

Show all calculations

Answer 1

To calculate the total profit from selling 35 chairs purchased at R150 each with a 25% mark-up, we can follow these steps:

1. **Calculate the total cost of the chairs**:
\[
\text{Total Cost} = \text{Number of Chairs} \times \text{Cost per Chair}
\]
\[
= 35 \times 150 = 5250 \text{ Rands}
\]

2. **Calculate the selling price per chair** with a 25% mark-up:
\[
\text{Selling Price per Chair} = \text{Cost per Chair} + \text{Mark-up}
\]
\[
\text{Mark-up} = \text{Cost per Chair} \times \text{Percentage of Mark-up}
\]
\[
= 150 \times 0.25 = 37.50 \text{ Rands}
\]
\[
\text{Selling Price per Chair} = 150 + 37.50 = 187.50 \text{ Rands}
\]

3. **Calculate the total revenue from selling all chairs**:
\[
\text{Total Revenue} = \text{Number of Chairs} \times \text{Selling Price per Chair}
\]
\[
= 35 \times 187.50 = 6562.50 \text{ Rands}
\]

4. **Calculate the total profit**:
\[
\text{Total Profit} = \text{Total Revenue} - \text{Total Cost}
\]
\[
= 6562.50 - 5250 = 1312.50 \text{ Rands}
\]

Thus, the total profit from selling the chairs is **R1312.50**.

Since this isn't one of the answer choices, please verify whether the options provided are correct based on the calculations. If they are incorrect, the calculated profit is **R1312.50**, and there seems to be a mistake in the options provided.