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A wholesaler purchases “n” mobile phones from the manufacturer at a price of $120 per mobile and sells them to the retailers at a price of $180 per mobile. Because the payments are made online, the wholesaler needs to pay a transaction charge of 5% while purchasing from the manufacturer and selling to the retailer. What is the profit percentage of the wholesaler after purchasing and selling all the “n” mobile phones?
  • a)
    33.3%
  • b)
    36%
  • c)
    50%
  • d)
    65%
  • e)
    75%
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
A wholesaler purchases “n” mobile phones from the manufact...
Let's assume the number of mobile phones purchased is "n."
Cost price per mobile phone = $120 + 5% of $120 = $120 + (5/100) * $120 = $120 + $6 = $126
Selling price per mobile phone = $180 - 5% of $180 = $180 - (5/100) * $180 = $180 - $9 = $171
The profit per mobile phone = Selling price - Cost price = $171 - $126 = $45
Total profit for "n" mobile phones = $45 * n
Profit percentage = (Total profit / Total cost price) * 100 = [(45 * n) / (126 * n)] * 100 = (45 / 126) * 100 = 0.357 * 100 = 35.7%
Approximating to the nearest whole number, the profit percentage is 36%.
Therefore, the correct answer is (B) 36%.
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Community Answer
A wholesaler purchases “n” mobile phones from the manufact...
Goods or products in large quantities from manufacturers or suppliers and then sells them to retailers or other businesses. The wholesaler acts as an intermediary between the manufacturer and the retailer, helping to distribute products efficiently and at a lower cost. The wholesaler typically buys goods at a discounted price and then marks up the price to make a profit when selling to retailers. They may also provide additional services such as storage, transportation, and marketing support.
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A wholesaler purchases “n” mobile phones from the manufacturer at a price of $120 per mobile and sells them to the retailers at a price of $180 per mobile. Because the payments are made online, the wholesaler needs to pay a transaction charge of 5% while purchasing from the manufacturer and selling to the retailer. What is the profit percentage of the wholesaler after purchasing and selling all the “n” mobile phones?a)33.3%b)36%c)50%d)65%e)75%Correct answer is option 'B'. Can you explain this answer?
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