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A computer store originally bought 1,000 modems at a total..

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A computer store originally bought 1,000 modems at a total..

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A computer store originally bought 1,000 modems at a total cost of d dollars. If each modem was sold for 25 percent more than its original cost, what was the individual price, in terms of d, of each modem sold?

(A) d/800
(B) 5d/1000
(C) 125d
(D) d/1000 + 25
(E) 125/(1000d)

The OA is A.

I'm really confused with this PS question. Experts, any suggestion? Thanks in advance.

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Hello LUANDATO.

Let's take a look at your question.

If the store bought 1,000 modems for d dollars, it implies that the individual price is given by $$p=\frac{d}{1,000}\ \text{dollars}.$$ Since each modem was sold for 25 percent more than its original cost, then the price of each modem sold was $$p+25\%\cdot p=125\%\cdot p=\frac{125}{100}\cdot p=\frac{5}{4}\cdot p=\frac{5}{4}\cdot\frac{d}{1,000}=\frac{5d}{4,000}\ =\frac{d}{800}\ \text{dollars}.$$ This is why the correct answer is the option A=d/800.

I hope this explanation may help you.

I'm available if you'd like a follow-up.

Regards.

_________________
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