A dollar store bought 1000 pair of socks auctioned off en bloc for $2000.00. This means that each pair of socks has the same cost. On inspection, the socks were classified as normal quality, seconds, and substandard. The 600 normal quality socks were sold at a markup of 90% of cost, the 300 pair of socks classified as seconds were sold at a markup of 30% of cost, and the socks classified as substandard were sold at 60% of their cost. What was the unit price at which each of the three classifications was sold?

Question

Quizplus · Accepted Answer

The cost per pair of socks is $2000/1000 = $2.00. The normal quality socks were sold at a 90% markup, so they were sold at $2.00 + ($2.00 * 0.90) = $3.80. The seconds were sold at a 30% markup, so they were sold at $2.00 + ($2.00 * 0.30) = $2.60. The substandard socks were sold at 60% of their cost, so they were sold at $2.00 * 0.60 = $1.20.

A Dollar Store Bought 1000 Pair of Socks Auctioned Off