Question

2. Marty and Irene Benefield purchased 400 shares of airline stockyears ago. They paid a total of $8,484.55 for the stock. Lastweek they sold the stock for $19.50 per share and paid an onlinecommission of $19.95.a. What was the amount of the sale?b. What was the net sale?c. What was the profit or loss?

Answer 1

Solution

Step 1:

Find the cost per share

$\begin{gathered} Cost\text{ per share = }\frac{8484.55}{400} \\ =\text{ \ 21.211375} \end{gathered}$

Selling price = $19.5

$Total\text{ selling price = 400 }\times\text{ \ 19.50 = \ 7800}$

a)

Amount of sale = $7800

b)

Net sale = Amount of sale - Commission

$\begin{gathered} Net\text{ sale = \ 7800 - \ 19.95} \\ =\text{ \ 7780.05} \end{gathered}$

c) Amount paid = $8484.55

Net sale = $7780.05

Since net sale is less than the amount paid, hence, it is loss

Loss