darlingriyarai wrote:A certain rnanufacturer increased its gross profit on a product from 10 percent of the cost of the product to 15 percent of the cost by changing the selling price. If the new selling price was $92.00 and the cost of the product remained the same, what was the old selling price?
A. $77.40
B. $80.00
C. $83.64
D. $87.40
E. $88.00
Let O = the old selling price and N = the new selling price.
O = 110/100 of the cost.
N = 115/100 of the cost.
Thus:
O : N = (110/100) : (115/100) = 110:115 = 22:23.
The ratio above implies that O is a multiple of 22.
Of the answer choices, only
E is a multiple of 22.
To confirm, if O=88, we get:
O : N = 88:92 = 22:23.
The correct answer is
E.
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