Question

Allen bought 1,350 shares of stock for $12 per share. If he sold all his shares for $27,000, how much profit on each share did he make?

Answer 1

The answer is $10,800. Just multiply 1,350 by 12 then subtract the answer from $27,000.

Answer 2

Total number of shares bought by Allen = 1350
Cost of each share bought by Allen = $12
Then
The total cost of buying the 1350 shares that Allen had to pay = (1350 * 12) dollars
= 16200 dollars
The amount at which the shares were sold by Allen = $27000
Amount of profit made by Allen by selling 1350 shares = (27000 - 16200) dollars
= 10800 dollars
Amount of profit made by Allen on each share = 10800/1350 dollars
= 8 dollars
So the amount of profit made by allen on each share is $8.