Question

A set of pencils sells for $1.75 and cost $0.40 to make. Twenty percent of the profit from each set of pencils go to a school. If 500 sets are sold, what amounts of money that will go back to the school.

Answer 1

Cost of a set of pencils = $0.40

Selling price of a set of pencils = $1.75

Profit = $1.75 - $0.40 = $1.35

Amount that goes to the school = 20% x $1.35 = 0.2 x 1.35 = $0.27

Total amount that goes to the school = $0.27 x 500 = $135

Answer: $135