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Difficulty: MediumProfit and Loss

A furniture restorer buys an antique dining set for $250\$250. The restorer spends $80\$80 on wood stain and varnish, and pays an upholsterer $170\$170 to repair the chair cushions. After the restoration is complete, the dining set is sold for $800\$800. What is the restorer's profit as a percentage of their total cost?

Answer: 60 %

Answer

60%
By summing the initial price and all repair costs, we find the total investment is 500.Subtractingthisfromthe500. Subtracting this from the 800 selling price yields a 300profit.Theprofitisthendividedbythetotalcost(300 profit. The profit is then divided by the total cost ( 300 / $500) to find the 60% profit.

Step-by-Step Solution

1
Calculate the total cost of the dining set project.
$250+$80+$170=$500\$250 + \$80 + \$170 = \$500
The total cost must include the initial purchase price plus any additional expenses incurred before selling the item.
2
Calculate the total profit made on the sale.
$800−$500=$300\$800 - \$500 = \$300
Profit is the difference between the final selling price and the total cost.
3
Calculate the profit as a percentage of the total cost.
$300$500×100=60%\frac{\$300}{\$500} \times 100 = 60\%
Percentage profit is found by dividing the dollar amount of profit by the original total cost and converting to a percentage.

Key Concept

Calculating profit percentage after accounting for overhead and multi-step production costs.
Estimated Time:1m 15s
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Topics

Profit and Loss

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