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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.
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