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A company sells a product. The profit increased to 25

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Senior Manager
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A company sells a product. The profit increased to 25 [#permalink]

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05 May 2006, 22:08
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A company sells a product. The profit increased to 25 percent of the cost from 20 percent of cost after adjusting to new selling price. The new price is $80 and the cost is not changed. What is the old price? VP Joined: 29 Dec 2005 Posts: 1348 Followers: 10 Kudos [?]: 60 [0], given: 0 Re: Old price [#permalink] Show Tags 17 May 2006, 17:10 getzgetzu wrote: A company sells a product. The profit increased to 25 percent of the cost from 20 percent of cost after adjusting to new selling price. The new price is$80 and the cost is not changed. What is the old price?

p(n) = 80
cost (n) = 80/1.25 = 64
p(o) = 64(1.2) = 76.80
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17 May 2006, 19:48
cost=x
old selling price=1.2x
new selling price=1.25x
1.2x = (80x1.2)/1.25 = $76.80 GMAT Club Legend Joined: 07 Jul 2004 Posts: 5062 Location: Singapore Followers: 30 Kudos [?]: 358 [0], given: 0 Show Tags 17 May 2006, 20:32 Cost of produt =$x

Prevous profit = $1.2x New profit =$1.25x

New profit = New selling price - Cost

1.25x = 80 - x
0.25x = 80
x = 320

Old profit = Old selling price - Cost
1.2(320) = Old selling price - 320
Old selling price = $64 Senior Manager Joined: 15 Mar 2005 Posts: 419 Location: Phoenix Followers: 2 Kudos [?]: 26 [0], given: 0 Re: Old price [#permalink] Show Tags 18 May 2006, 00:13 getzgetzu wrote: A company sells a product. The profit increased to 25 percent of the cost from 20 percent of cost after adjusting to new selling price. The new price is$80 and the cost is not changed. What is the old price?

80 = 1.25 Cost
Old SP = Cost *1.2 = 80*1.2/1.25 = 80*24/25=384/5 = 76.8
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18 May 2006, 00:35
ywilfred wrote:
Cost of produt = $x Prevous profit =$1.2x

New profit = $1.25x New profit = New selling price - Cost 1.25x = 80 - x 0.25x = 80 x = 320 Old profit = Old selling price - Cost 1.2(320) = Old selling price - 320 Old selling price =$64

Not so fast

0.25x = 80 -x

x = 64

64 + 0.2 * 64 = 76.8
18 May 2006, 00:35
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