4. The chart above shows the store's cost and list price for three models of stoves sold by an appliance store. During a 20 percent off sale, Gene bought a Model Y stove from this store. How much profit did the store make on Gene's purchase? (Profit = Price paid - Store's cost)
Answer: D
The store made a profit of $760 on Gene's purchase of the Model Y stove.
To calculate the profit made by the store on Gene's purchase, we subtract the store's cost from the price Gene paid after the discount. After applying the 20 percent discount to the list price, the profit amounts to $760.
A) $260
This option is incorrect because a profit of $260 does not accurately reflect the calculation of the price Gene paid minus the store's cost. The figures suggest a much higher profit margin based on the sale price and the original cost.
B) $380
A profit of $380 is also incorrect. This option underestimates the profit earned by the store, as the calculations reveal that the price Gene paid after the discount was significantly higher than this amount when compared to the store's cost.
C) $590
This option is incorrect as well. A profit of $590 does not align with the figures provided; the profit calculated from the sale price minus the store's cost shows a greater margin than this option reflects.
D) $760
This is the correct answer. The profit of $760 correctly represents the difference between the discounted price Gene paid for the Model Y stove and the store's cost. This amount indicates a successful transaction for the store.
Conclusion
The correct profit of $760 clearly results from the calculations involving the sale price after the discount and the store's cost. All other options fail to represent the accurate profit margin based on the given figures, highlighting the substantial profit made by the store on Gene's purchase.