Respuesta :
Answer: Profit Percentage = 25.55%
Explanation:
Given that,
Cost of two 180-front foot lots = $33500 × 2 = $67000 ⇒ Total cost
Total revenue = total front foot lots × selling price per front foot
= 360 × 250
= $90000
Net income = Revenue - cost
= $90000 - 67000
= $23000
Profit Percentage = [tex]\frac{Net\ Income}{Revenue} \times 100[/tex]
= [tex]\frac{23000}{90000} \times 100[/tex]
= 25.55%
The developer's Profit Percentage is 25.55%, If he purchased two 180-front foot lots for $33,500 net each and divided them into three 120-foot lots.
What is profit percentage?
Profit percentage is also named as profit margin, net profit margin, or net profit ratio. It is a measure of profitability.
It is computed by discovering the net profit as a percentage of the revenue.
Formula of profit percentage is:
[tex]\text{Profit percentage}=\dfrac{\text{Net income}}{\text{Revenue}}\times 100[/tex]
Computation of percentage of profit:
According to the given information,
First, find the cost of two 180-front foot lots, that is:
[tex]\text{Total Cost}=\$33,500 \times 2 \\\\\text{Total Cost }= \$67,000[/tex]
Now, the total revenue is:
[tex]\text{Total Revenue} = \text{Total Front Foot Lots}\times{\text{ Selling Price Per Front Foot}}\\\\\text{Total Revenue}= 360\times 250\\\\\text{Total Revenue}=\$90,000[/tex]
Then, Net Income is:
[tex]\text{Net Income} = \text{Revenue} -\text{Cost}\\\\\text{Net Income} = \$90,000 - \$67,000\\\\\text{Net Income} = \$23,000[/tex]
Therefore, the profit percentage is:
Apply the values in the above formula,
[tex]\text{Profit percentage}=\dfrac{\$23,000}{\$90,000}\\\\\text{Profit percentage}=25.55\%[/tex]
Therefore, the developer's Profit Percentage is 25.55%.
Learn more about the profit, refer to:
https://brainly.com/question/1494270
