29 -21

magical cook · Posted: Tue Aug 28, 2007 10:24 am Post subject: 29 -21

A toy store’s gross profit on a computer game was 10 percent of the cost of the game. If
the store increased the selling price of the game from $44 to $46 and the cost of the game
remained the same, then the store’s gross profit on the game after the price increase was
what percent of the cost of the game?
A. 10.5%
B. 11%
C. 12.5%
D. 13%
E. 15%

beny · Posted: Tue Aug 28, 2007 10:40 am Post subject:

The cost of the game is x. The sale price is $44. The gross profit is 10%.

Gross profit = profit/cost = (44-x)/x

(44-x)/x = 1/10
x=40

Therefore, the cost of the game is 40. If the price increased to $46, the gross margin would be 6/40 = 15%.

Answer: E

magical cook · Posted: Tue Aug 28, 2007 10:45 am Post subject:

Yes - OA is E. Thank you!