Whenever Bianca travels to Italy, she brings back Gucci bags to sell to her friends. The bags she buys in Italy are purchased at a 60 percent discount off American prices. She sells the bags to her friends at a price 25 percent higher than what she paid for them. After one trip, she sells bags to her friends that would have cost $4000 in American stores. What is Bianca's profit per bag?

Question

Marisol Young

Business

30 March, 07:30

Whenever Bianca travels to Italy, she brings back Gucci bags to sell to her friends. The bags she buys in Italy are purchased at a 60 percent discount off American prices. She sells the bags to her friends at a price 25 percent higher than what she paid for them. After one trip, she sells bags to her friends that would have cost $4000 in American stores. What is Bianca's profit per bag?

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Answers (1)

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Theodore Key · Answer 1

Bianca's profit per bag is $4,000

Explanation:

The computation is shown below:

The actual value paid by the Bianca = Cost of bag * remaining percentage

= $4,000 * 40%

= $1,600

Then it sold 25% higher

So, = Actual value * (100 + profit percentage)

= $1,600 * (100 + 25%)

= $2,000

So, the profit would equal to

= $2,000 - $1,600

= $400