Answer:
Revenue(net profit) = 720.00 £ (-35%)
Step-by-step explanation:
Given that Poppy Lapel Pins made 1000 Poppy Lapel Pins that costed £1.10 each to make. This is what is subtracted from the sales. Which means 1100£ is what is deducted from the net(total) profit. 1000 * £1.10 = 1110.00£ (cost)
When it says that 35% of these are given to charity, these are the number of pins that they did not make profit off of. It also says the remaining are sold which means that the other 65% are sold since 100%-35% = 65%.
Referring back to how 1000 total pins are sold, we are given that 35% of these are given to charity which are the pins that the company does not make profit off of. Because 35% of these are disregarded from profit 1000 minus 35% of 1000 is 1000 - 350 = 650 pins (number of pins sold for profit).
We are also given that these 650 pins are split up into another set of sales, being 60% of these is sold for 3£ each pin, and the other 40% are sold for 5£ each 2 pins.
Now we can set up an expression to solve for the net profit as a quantity.
(650 × 60% × 3£) + ( 1/2 × 650 × 40% × 5£)
= ( 390 × 3£ ) + ( 260 × 1/2 × 5£) = (1170.00£) + (650£) = (1820.00£).
Then to find the revenue or total income made, we must subtract the *cost* from the *net profit*
Revenue = profit - cost.
Revenue = 1820.00£ - 1100.00£ = 720.00£.
Once that is done, to find the percent margin, we must subtract the revenue from the cost all divided by the cost, and multiplied by 100( to convert it to a precent ).
Margin = ((Revenue-cost)/cost × 100)%
Margin = ((720.00£-1100.00£)/1100£ × 100)% = -380/1100£ × 100%= -0.345454... × 100% ≈ -35%
