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Difficulty: EasyProfit and Loss

A mechanic purchases a broken bicycle for $40\$40 at a garage sale. He then buys new tires and a chain for a total of $25\$25. After repairing the bicycle, he sells it for $110\$110. What is his total profit, in dollars?

Answer: 45

Answer

45
The total cost is the sum of the purchase price ($40\$40) and the repair parts ($25\$25), which is $65\$65. The profit is found by subtracting this total cost from the selling price ($110\$110), which gives $45\$45.

Step-by-Step Solution

1
Calculate the total cost.
$40+$25=$65\$40 + \$25 = \$65
The total cost includes the purchase price plus the cost of the repair parts.
2
Calculate the profit.
$110−$65=$45\$110 - \$65 = \$45
Profit is the difference between the selling price and the total cost.

Key Concept

Profit is calculated by subtracting all associated costs (purchase price plus any overhead or repairs) from the final selling price.
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Topics

Profit and Loss

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