Respuesta :
The original cost of the tract was $75,240.
Cost Price (CP):
It is the price at which a commodity is bought.
Selling Price (SP):
It is the price at which a commodity is sold.
Profit/ Loss:
- If the cost price < selling price, we obtain a profit.
Profit = SP - CP.
- If the cost price > selling price, we obtain a profit.
Loss = CP - SP.
Step 1: Find the cost of selling the entire tract of 40 acres. It can be found by multiplying the total area by the cost of one acre.
The total area of the tract = 40 acres.
Cost of selling 1 acre of tract = $2,200.
The total selling price (SP) = The total area of tract x 1 acre of tract
⇒ The total selling price = 40 x 2,200 = $88,000
Hence, SP = $88,000.
Step 2: Calculate the profit obtained on SP.
The profit obtained = 14.5% of the SP
⇒ Profit obtained = 14.5% x 88,000 = $12,760.
∴ Profit = $12,760.
Step 3: Find the original price or cost price.
Profit = SP - CP
⇒ CP = SP - Profit
The original cost of the tract = 88000 - 12760 = $75,240.
Hence, the original cost of the tract was $75,240.
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