Problema Solution

Ahmed buys a pack of 20 drinks to sell at the school shop. The pack costs $5.

He wants to make a 40% profit.

How much should he sell each drink for?

Answer provided by our tutors

Since, Ahmed wants to sell the pack for a 40% profit, he will need to have a total cost of what he paid (100% of 5) plus the desired profit (40% of $5). Therefore, we can write:


Selling cost=(1.40)5

Selling cost=$7


Therefore, he must sell the pack for $7 in order to make a 40% profit.