You have a used CD store. At an estate sale, you can purchase 260 compact discs for $400. You believe you could sell the CDs for an average of $2.50 each. What is the net benefit of buying the CDs at the estate sale and selling them in your store?

Question

Quizplus · Accepted Answer

The net benefit is the difference between the selling price and the purchase price. The selling price is 260 CDs x $2.50/CD = $650. The purchase price is $400. Therefore, the net benefit is $650 - $400 = $250.

You Have a Used CD Store