Question

A nursery has $50,000 of inventory in dogwood trees and red maple trees. the profit on a dogwood tree is 28% and the profit on a red maple tree is 18%. the profit for the entire stock is 20%. how much was invested in each type of tree?

Answer 1

Answer and Explanation:

Let us assume the following things

x = dogwood inventory percentage

and, (50,000 - x) = red maple tree inventory percentage

And, the amount of profit is

= $50,000 × 0.20

= $10,000

Now the equation would be

0.28x + 0.18 × ($50,000 - x) = $10,000

0.28x + $9,000 - 0.18x = $10,000

0.10x = 1,000

x = 10,000 = dogwood

So, the red maple would be

= 50,000 - 10,000

= 40,000