Investor purchased 3 lots for a total of $360,000, then resold them for $600,000. Based on cost, what was the percentage of gross profit?

Question

Quizplus · Accepted Answer

The cost of each lot would be $360,000/3 = $120,000. 
The gross profit would be $600,000 - $360,000 = $240,000. 
The gross profit percentage based on cost would be (gross profit/cost) x 100% = ($240,000/$360,000) x 100% = 66.67%.

Investor Purchased 3 Lots for a Total of $360,000, Then