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# A retailer shop's gross profit on a camera was 10 percent of the cost

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BSchool Forum Moderator
Joined: 29 Jan 2015
Posts: 1419
Location: India
WE: General Management (Non-Profit and Government)
A retailer shop's gross profit on a camera was 10 percent of the cost  [#permalink]

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18 Jun 2018, 09:25
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35% (medium)

Question Stats:

72% (02:03) correct 28% (02:11) wrong based on 53 sessions

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A retailer shop's gross profit on a camera was 10 percent of the cost of the camera. If the store increase the selling price of the camera from $440 to$460 and the cost of the camera remained the same, then the shop's gross profit on the camera after the price increase was what percent of the cost of the camera?

(A) 11%
(B) 12.5%
(C) 13%
(D) 15%
(E) 16.67%

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A retailer shop's gross profit on a camera was 10 percent of the cost  [#permalink]

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18 Jun 2018, 09:52
rohan2345 wrote:
A retailer shop's gross profit on a camera was 10 percent of the cost of the camera. If the store increase the selling price of the camera from $440 to$460 and the cost of the camera remained the same, then the shop's gross profit on the camera after the price increase was what percent of the cost of the camera?

(A) 11%
(B) 12.5%
(C) 13%
(D) 15%
(E) 16.67%

Because we have only two prices and cost does not change, we must assume that the first price of $440 is the one in which profit = 10% of cost ($440 yields cost)

Profit = TR - TC
Profit also = 0.10 C. Put this term on LHS
So $$.10C = TR - TC$$
$$1.10C = TR$$

for the initial sell price before the increase

1) First sell price (TR) yields the cost
Sell price = TR = $440 From above: $$TR = 1.10C$$ $$440 = 1.1 C$$ $$C = 400$$ Cost does not change. 2) New sell price (the increase) =$460
TR - TC = Profit
Profit: $$(460 - 400) = 60$$

3) Profit ($60) from new sell price is what percent of cost ($400)?

$$\frac{60}{400}*100= (.15*100) = 15$$ %

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Re: A retailer shop's gross profit on a camera was 10 percent of the cost  [#permalink]

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29 Sep 2018, 20:11
rohan2345 wrote:
A retailer shop's gross profit on a camera was 10 percent of the cost of the camera. If the store increase the selling price of the camera from $440 to$460 and the cost of the camera remained the same, then the shop's gross profit on the camera after the price increase was what percent of the cost of the camera?

(A) 11%
(B) 12.5%
(C) 13%
(D) 15%
(E) 16.67%

old selling price: 440

New selling price : 460

(440/120)*100 = 400 = cost price

Profit after increasing the selling price 440 to 460 : 60 - 400 = 60

profit % : (60 / 400)*100 = 15%.

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Joined: 24 Nov 2016
Posts: 618
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A retailer shop's gross profit on a camera was 10 percent of the cost  [#permalink]

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06 Jul 2019, 16:18
rohan2345 wrote:
A retailer shop's gross profit on a camera was 10 percent of the cost of the camera. If the store increase the selling price of the camera from $440 to$460 and the cost of the camera remained the same, then the shop's gross profit on the camera after the price increase was what percent of the cost of the camera?

(A) 11%
(B) 12.5%
(C) 13%
(D) 15%
(E) 16.67%

You can solve this using a direct proportion:
If at $440 the gross was 10%, then at$660 the gross will be x, which is the same as solving for
0.10/440=x/660, x=660*0.10/440=0.15

A retailer shop's gross profit on a camera was 10 percent of the cost   [#permalink] 06 Jul 2019, 16:18
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