Question

A baker sells a box of muffins for $\$6.50$. The manufacturing cost of the muffins is $\$5$. The delivery charge is $\$0.20$. The percentage profit on the muffins is $\%$.

Answer 1

Total cost(TC) = Manufacturing cost(MC) + delivery charge $=\$5+\$0.20=\$5.20$

We know : $\%\text{Profit}=\frac{SP-TC}{TC}\times 100$

$\Rightarrow \%\text{Profit}=\frac{6.5-5.20}{5.20}\times 100=25\%$