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by shibal » Fri May 01, 2009 11:20 am
a merchant made a gross profit of 40 dolars from the sale of a tie. if the gross profit was 25% of the cost of the tie to the marchant, for how many dollars more should the merchant have sold the tie for the gross profit to have been 30% of the cost/

OA: 8
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by maihuna » Fri May 01, 2009 11:26 am
CP of tie = 40/1.25 = 4000/125 = 32
30% gain = 5% additional to 32 = 1.60
so 41.60 for 30% or additional 1.60
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by mkbigmoz » Fri May 01, 2009 11:39 am
G = 40.

G = 1/4 Cost

1/4C = 40

Cost = 160

Sold at 160+40= 200 (retail price)


160+ .3(160)= 208

208-200 = 8

8
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by mkbigmoz » Fri May 01, 2009 11:40 am
maihuna wrote:CP of tie = 40/1.25 = 4000/125 = 32
30% gain = 5% additional to 32 = 1.60
so 41.60 for 30% or additional 1.60


Maihuna, CP should be 40/.25. Thats why the numbers got all messed up.
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