Quote:
Originally Posted by stooken
closest answer.
$7 + the COST of the widget. $3 is what he's selling the widget for.
for those wondering, the vendor profited $3 from the sale of the widget. he went to the neighboring business and got exchanged a $10 bill for $10 in change. so the vendor kept $3 and gave the $7 back to the customer.
then he gave $10 to the neighboring business for that fake $10, or put another way $7 and a widget.
so $3-$10 = ($7)
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This is wrong actually. The price of a widget is $3 for a reason, it is most likely the minimum price that he would accept to cover his losses for the purchase of the widget and the time and effort he spent trying to sell that one widget. He does not make a straight $3 profit from selling a widget or even $3 - cost of the widget for that matter.
The correct answer is he lost $10.