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PS

by ketkoag » Fri Mar 27, 2009 1:24 am
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%

OA E
Please explain.....
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Re: PS

by Vemuri » Fri Mar 27, 2009 1:53 am
Selling Price = Buying Price + Profit

We know the selling price ($44 initially). Lets assume Buying price is $x.
i.e. 44 = x+10%x ==> 44 = x(1.1) ==> x = $40
So, the cost of the computer game is $40.

Now, the question states that the selling price increased to $46, but the cost remained the same. We need to find the percentage of the cost price (lets assume y is the %),

46 = 40 + 40*y% ==> 6 = 40*y% ==> y% = 6/40 ==> y% = 15%
***********************************************************

A simpler approach is to find the buying price (we got that as $40), then if 10% of $40 is $4 (making the selling price $44), and 20% of $40 is $8 (making the selling price $48), then 15% of 40 is $6 (making the selling price $46).

Hope that helps.
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