Question

Whenever Bianca travels to Italy, she brings back Gucci bags to sell to her friends. The bags she buys in Italy are purchased at a 60 percent discount off American prices. She sells the bags to her friends at a price 25 percent higher than what she paid for them. After one trip, she sells bags to her friends that would have cost $4000 in American stores. What is Bianca’s profit per bag?

Answer 1

Answer:

Bianca’s profit per bag is $4,000

Explanation:

The computation is shown below:

The actual value paid by the Bianca = Cost of bag × remaining percentage

                                                        = $4,000 × 40%

                                                        = $1,600

Then it sold 25% higher

So, = Actual value × (100 + profit percentage)

     = $1,600 × (100 + 25%)

     = $2,000

So, the profit would equal to

= $2,000 - $1,600

= $400