A store owner purchases 40 shirts for $600. She then adds 40% to her cost and then tags each shirt with the new selling price. How much profit does she earn on each shirt?

Answer 1

A store owner purchases 40 shirts for $600. She then adds 40% to her cost and then tags each shirt with the new selling price. How much profit does she earn on each shirt?

Answer 2

40 shirts for $600 ... $15 each

40% markup ... .40 * 15 = 6

new selling price ... 15 + 6 = $21 ... $6 profit