# Hi please help me

pavan_515
Registered Posts:

**12**
Ali buys 120 cans of drinkv for a total of £30 he wants to make a profit of 40% work out the price for which he should sell each can of drink

Please type the working out

Please type the working out

## Answers

21824So if he needs to make £42 and has 120 cans, he can divide 42/120 to get the answer per can.

There are several ways to work this question out, if you can figure out a few different methods then that would tell me you understood it completely.

- Pol

440Would you not £ 30/0.6 = £ 50 for the total

So, £ 50 - £ 30 = £ 20 Profit (£ 20 / £ 50 = 40 %)

£ 50 / 120 cans = £ 0.4167 say £ 0.42

24Why did you divide by 0.6? To get the total (Spend + 40% Profit) you would Multiply by 1.4 or 140% which gives 42.

42 - 30 = £12 Profit

42/120 = £0.35

Something to note: If in the exam you're asked a question like this, your answer is most likely incorrect if you have a long decimal figure (Like £ 0.4167) UNLESS in the question is states how many decimals to place.

440Maybe am reading wrong, but as above would not a profit of 12 represent of profit of 28.6 % only (ie. 12 / Selling price of 42). By multiplying by 1.4 I think this would be marking-up by 40 %, not achieving a profit margin of 40 %.

The 0.4167 looks a bit wonky to me too but,

Selling Price 0.42

Cost 0.25 (30/120)

Profit 0.17

0.17 / 0.42 = 40 %

I was bored half asleep at work when writing my answer so who knows

24If the sell price was 0.42 and you sold all the cans you would be making £50.40 which is £20.40 MORE than what he bought them for.

That's making a 68% profit. Not 40%440Thank you for the advice regarding future questions however I finished AAT maybe 10 years ago....

Sales 50.40

COS 30.00

Profit 20.40

Profit Margin = 40 % (20.4 / 50.4)

Mark Up = 60 % ( 30 / 50.4)

Or maybe im going mad ?

Anyway, hope the OP sees our responses and can take something from it. Mark-Up / Margin can get confusing.

1,363The question is badly worded in the first place. A 40% profit on what?

Both answers could be correct. I actually came to the same conclusion as @crispy initially, but can see the other answer is also valid.

2424I read back what I wrote this morning and yes, that shouldn't have been said and I was being very ignorant.

Please accept my apologies for being rude Crispy, you are right; both answers could be correct.

1212245I'll try to explain:

First work out what the price of one can is:

so 120 cans = £30, therefore 1 can is 30/120 = £0.25 pounds

So then he wants to make a profit of 40%, so add this to 100% = 140%

So 140/100 x £0.25 = £0.35 - this is the price he should sell each can of drink in order to earn 40% profit

Hope it helps.

412. The question is worded poorly. I would guess you have left a part out, otherwise I'm surprised a real textbook would word it like that.

@h0llymay the answer is 35p because 120 cans cost £30 which equals 25p per can. Multiply this by 1.40 to get 35p. Not that anyone would know but the question is asking for a mark up of 40%. If it was asking for a profit margin of 40%, you would divide 25p by 0.60 (100% less 40% profit margin) which is how others got 42p. Questions will usually specify mark up or margin.

41121241241212242412121,363You can change your settings so you do not receive notifications each time someone comments.

Deleting a question once you have had the answer is not in the spirit of the forum. I am sure other forum users will find the conversation useful.

Please also remember to remain polite even if you disagree.

12218It would appear to me that since you got the answer 10 mins after posting the question you didn't initially spend long enough trying to work out the answer. You've put this onto the forum for an easy answer.

When you read through this thread it's length is increased by your comments which seemed to critise.

People who use this forum help each other, I've posted questions which have had several reply's and others have had none.

The question was basic and therefore you should have expected a number of responses.

I would certainly think twice in the future about answering a question posted by you!