A man bought two 60 foot lots for thirty thousand dollars each and decided to divide them into three lots consisting of equal frontage. He sold each lot for $24,000.
What the percentage of his gross profit ?
Please take your time. The soluton is posted below the wildlife photo.
A. 20% gross profit
If he paid thirty thousand dollars for two lots, then he paid sixty thousand dollars for both of the lots.
If he sold three lots for 24,000, the gross income from the sale was 72,000 and the net was 12 thousand over the original purchase price.
Divide the original purcahse price of 60 thousand dollars into the gross profit of twelve thousand dollars and we see that the percentage of the gross profit is .20 or 20%.
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