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A manufacturers gross profit on an item was 20 percent of the cost of
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17 Oct 2023, 23:55
17 Oct 2023, 23:55
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69% (01:52) correct
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A manufacturer’s gross profit on an item was 20 percent of the cost of the item. If the manufacturer increased the selling price of the item from $60 to $65, while kept the cost of the item same, then the manufacturer’s profit on the item after the price increase was what percent of the cost of the item?
(A) 12%
(B) 15%
(C) 20%
(D) 24%
(E) 30%
(A) 12%
(B) 15%
(C) 20%
(D) 24%
(E) 30%
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Joined: 11 Nov 2023
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WE:Business Development (Advertising and PR)
A manufacturers gross profit on an item was 20 percent of the cost of
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02 Dec 2023, 18:23
02 Dec 2023, 18:23
1
Let c = cost of item, s = selling price.
Since we're given that the profit was initially 20% of the cost, we can set up the equation:
\(0.2c = s - c\)
We're also given that the initial selling price was $60, so plugging back into the equation, we can find the cost:
\(0.2c + c = 60\)
\(1.2c = 60\)
\(c = 60/1.2 = 50\)
Since we're told that c remains the same, the new profit is:
\(= 65-50 =15\)
Thus, the percentage of the new profit of the item over the cost of the item is:
\(\frac{15}{50}= \) 30%
Since we're given that the profit was initially 20% of the cost, we can set up the equation:
\(0.2c = s - c\)
We're also given that the initial selling price was $60, so plugging back into the equation, we can find the cost:
\(0.2c + c = 60\)
\(1.2c = 60\)
\(c = 60/1.2 = 50\)
Since we're told that c remains the same, the new profit is:
\(= 65-50 =15\)
Thus, the percentage of the new profit of the item over the cost of the item is:
\(\frac{15}{50}= \) 30%
gmatclubot
A manufacturers gross profit on an item was 20 percent of the cost of [#permalink]
02 Dec 2023, 18:23
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