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STORE'S COST AND LIST PRICE OF THREE STOVES

\begin{tabular}{|c|c|c|}
\hline
Model & Store's Cost & List Price \\
\hline
\hline
[tex]$X$[/tex] & [tex]$\$[/tex] 520[tex]$ & $[/tex]\[tex]$ 900$[/tex] \\
\hline
[tex]$Y$[/tex] & [tex]$\$[/tex] 850[tex]$ & $[/tex]\[tex]$ 1,800$[/tex] \\
\hline
[tex]$Z$[/tex] & [tex]$\$[/tex] 700[tex]$ & $[/tex]\[tex]$ 1,200$[/tex] \\
\hline
\end{tabular}

The chart above shows the store's cost and list price for three models of stoves sold by an appliance store. During a 20 percent off sale, Gene bought a Model [tex]$Y$[/tex] stove from this store. How much profit did the store make on Gene's purchase? (Profit = Price paid - Store's cost)

A. [tex]$\$[/tex] 260[tex]$
B. $[/tex]\[tex]$ 380$[/tex]
C. [tex]$\$[/tex] 590[tex]$
D. $[/tex]\[tex]$ 760$[/tex]



Answer :

GinnyAnswer
To determine the profit the store made on Gene's purchase of a Model [tex]$Y$[/tex] stove, we need to follow a series of calculations.

Step 1: Identify the relevant values for Model [tex]$Y$[/tex]
- Cost price (store's cost): \[tex]$850 - List price: \$[/tex]1800
- Discount: 20%

Step 2: Calculate the discount amount
The discount amount is determined by taking 20% off the list price.

[tex]\[ \text{Discount amount} = \left(\frac{20}{100}\right) \times 1800 = 0.2 \times 1800 = \$360 \][/tex]

Step 3: Calculate the price paid by Gene
Subtract the discount amount from the list price to find the actual price paid by Gene.

[tex]\[ \text{Price paid} = 1800 - 360 = \$1440 \][/tex]

Step 4: Calculate the profit made by the store
The profit is the difference between the price paid by Gene and the store's cost price.

[tex]\[ \text{Profit} = \text{Price paid} - \text{Cost price} = 1440 - 850 = \$590 \][/tex]

So, the profit made by the store on Gene's purchase is:

[tex]\[ \boxed{590} \][/tex]

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