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(2)Your store sells computers and software
(2)Your store sells computers and software. The average computer sells for €1,350, but the customer buying a computer also buys an average of €750 in software. You earn only 10% gross profit rate on sales of computers, but you make a 40% gross profit rate on software. You currently are selling 150 computers per month. What is the total amount of your monthly gross profit?
Expert Solution
Gross profit per computer = Selling price per computer x Gross profit rate on sales of computers
= €1,350 x 10%
= €135
Gross profit per software = Selling price per software x Gross profit rate on sales of software
= €750 x 40%
= €300
Total amount of monthly gross profit
= (Gross profit per computer + Gross profit per software) x Units sold
= (€135 + €300) x 150
= €435 x 150
= €65,250
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