A developer purchases two lots for $120,000 and divides them into four lots. If sold for $600 per front foot, what is the developer's percentage of profit?

To determine the developer's percentage of profit, first, it's essential to establish the total revenue from selling the lots and the total costs incurred.

The developer purchased two lots for $120,000. After dividing them into four separate lots, the revenue is derived from selling these lots at a rate of $600 per front foot. To accurately calculate the total revenue, you would need to know the total front footage of all the lots combined.

For simplification, let’s assume each of the four lots has an equal front footage. If they are sold for $600 per front foot, then the overall revenue from these lots can be computed based on the total front footage available. Assuming the four lots together provides a total of X front feet, the revenue would be 600 * X.

Next, to establish the profit, you need to subtract the total cost of buying the lots ($120,000) from the total revenue obtained from selling them.

If we assume the developer sold all four lots for a total of $240,000 (implying a total front footage that fits this revenue when sold at $600), the profit made would be:

Profit = Total Revenue – Total Cost = $240,000 - $120,000 = $120