3.2 Jay’s business is shoe retailing. He has bought in a special purchase of 1,000 pairs of trainers for £8,500.

He sells 750 pairs quite quickly at a retail price of £15.50 per pair. Then, in order to clear the inventory out of the shop he reduces the selling price to £12.50 and clears a further 200 pairs. The remaining 50 pairs are put into a bargain bin at a price of £5 per pair and these sell during the shop’s autumn sale. What is Jay’s gross profit on this line of trainers? How much gross profit would he have made if he had been able to sell the whole consignment at £15.50 per pair?