Katherine runs her own pizza shop. For each pizza, it costs her $2.21 for ingredients, $1.24 for overhead, and $0.47 for mailing flyers.What is the profit earned by Katherine as a percentage of her...

Katherine runs her own pizza shop. For each pizza, it costs her $2.21 for ingredients, $1.24 for overhead, and $0.47 for mailing flyers.

What is the profit earned by Katherine as a percentage of her costs, if each pizza is sold for $5.84?

Asked on by rogeryyo

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justaguide's profile pic

justaguide | College Teacher | (Level 2) Distinguished Educator

Posted on

The total costs to make a pizza are $2.21 for ingredients, $1.24 for overhead and $0.47 for mailing flyers.

Adding the three we get 2.21 + 1.24 + 0.47 = 3.92

The pizza are sold for $5.84

The profit she makes is $5.84 - $3.92 = 1.92

As a percentage of the costs this is (1.92 / 3.92)*100 = 48.97%

The profit made by Katherine as a percentage of the costs is 48.97%

hala718's profile pic

hala718 | High School Teacher | (Level 1) Educator Emeritus

Posted on

First we will calculate the cost for the pizza.

The cost of ingredients = 2.21

overhead cost = 1.24

mailing fliers = 0.47

Then the total cost of the pizza = 2.21 + 0.47 + 1.24 = 3.92 dollars.

Now we will calculate the profit.

The profit = selling price - cost

Given that the selling price = 5.84

==> The profit = 5.84 - 3.92 = 1.92

Now we will calculate the percentage of the profit = profit/ cost *100%

==> profit percentage = 1.92/ 3.92 * 100% = 48.98%

Then the profit is 48.98%

 

udonbutterfly's profile pic

udonbutterfly | Student, College Freshman | (Level 1) Valedictorian

Posted on

Okay so the cost of producing the product and advertising will be...

 $2.21 + $1.24 + $0.47 = $3.92

Katherine then sales each pizza for $5.84

Now you would subtract the amount it took the amount it took make the product from the sale price...

 $5.84 - $3.92 = $1.92 In dollar amount 1.92 is the dollar amount of profit that she gets for each pizza.

 $1.92 /$3.92= 0.4898 x 100 = 49%(rounded)  Now in order to get the percentage divide $1.92 by $5.84 then multiply by a hundred to get your percentage.

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