Tyrone buys chocolates in bulk to make gift baskets containing different chocolate bars to sell - NSC Mathematical Literacy - Question 1 - 2017 - Paper 1

Profit is defined as the amount earned from selling a product after deducting the costs associated with producing or purchasing that product. In simpler terms, it is the positive difference between the income received from sales and the expenses incurred. If the selling price is higher than the cost price, the difference is known as profit.

To find the amount added to the cost price, we calculate 40% of R435,40:

$Amount\, Added = Cost\, Price \times \frac{40}{100} = R435.40 \times 0.40 = R174.16$

To calculate the total cost price of the gift basket, we sum the costs of all items included:

$Total\, Cost\, Price = R10.04 + R8.70 + R20.66 + R6.73 + R29.99 = R76.12$

To find the selling price of each gift basket, we divide the total income by the number of baskets sold:

$Selling\, Price\, per\, Basket = \frac{Total\, Income}{Number\, of\, Baskets} = \frac{R22,770}{230} \approx R99.00$