Question 162 of 480
A woman buys 270 oranges for N1800.00 and sells at 5 for N40.00. What is her profit?
- A. N2,160.00
- B. N1, 620.00
- C. N630.00
- D. N360.00
Correct Answer:
D
Explanation
To determine the profit made by the woman from buying and selling oranges, we need to follow a series of steps to calculate both her total costs and total revenue. Let's break it down step-by-step.
### Step 1: Calculate the Cost Price (CP)
The woman buys 270 oranges for N1800.00. This means:
- **Cost Price (CP) per orange** = Total Cost / Number of Oranges
- **CP per orange** = N1800.00 / 270 = N6.67 (approximately)
### Step 2: Calculate the Selling Price (SP)
The woman sells the oranges at a rate of 5 for N40.00. To find the selling price per orange, we can use the following calculation:
- **Selling Price (SP) per orange** = Total Selling Price / Number of Oranges Sold
- **SP per orange** = N40.00 / 5 = N8.00
### Step 3: Calculate Total Revenue (TR)
Now, we need to calculate the total revenue from selling all 270 oranges:
- **Total Revenue (TR)** = Selling Price per orange × Number of Oranges Sold
- **TR** = N8.00 × 270 = N2160.00
### Step 4: Calculate Profit
Profit is calculated as the difference between total revenue and total cost:
- **Profit** = Total Revenue - Total Cost
- **Profit** = N2160.00 - N1800.00 = N360.00
### Conclusion
The profit made by the woman from selling the oranges is **N360.00**. Therefore, the correct option is **D. N360.00**.
### Explanation of Other Options
- **Option A: N2,160.00** - This option represents the total revenue, not the profit. Profit is the difference between revenue and cost, not the revenue itself.
- **Option B: N1,620.00** - This value does not correspond to any calculation related to the cost or revenue. It is incorrect as it does not reflect the profit calculation.
- **Option C: N630.00** - This option is also incorrect. It does not match any of the calculated values for profit, total revenue, or total cost.
### Common Pitfalls
1. **Confusing Revenue with Profit**: It's important to remember that profit is not the same as total revenue. Profit is what remains after subtracting costs from revenue.
2. **Miscalculating Selling Price**: Ensure that you correctly calculate the selling price per unit based on the given selling rate.
3. **Forgetting to Convert Units**: When dealing with bulk purchases, always ensure that calculations are consistent in terms of units (e.g., per orange).
### Revision Summary
- The cost price per orange is approximately N6.67.
- The selling price per orange is N8.00.
- Total revenue from selling 270 oranges is N2160.00.
- The profit made is N360.00, which corresponds to option D.