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Crazy Eddie has a key chain factory. Eddie managed to decrease the cos

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Crazy Eddie has a key chain factory. Eddie managed to decrease the cos  [#permalink]

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New post 22 Sep 2016, 05:00
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Question Stats:

72% (02:37) correct 28% (02:42) wrong based on 65 sessions

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Crazy Eddie has a key chain factory. Eddie managed to decrease the cost of manufacturing his key chains, and thus to increase the profit from the sale of each key chain from 25% of the selling price to 30% of the selling price. The selling price did not change. If the manufacturing price is now $140, what was it before the decrease?

A. $120
B. $150
C. $160
D. $180
E. $185

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Crazy Eddie has a key chain factory. Eddie managed to decrease the cos  [#permalink]

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New post 22 Sep 2016, 08:43
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Quote:
Crazy Eddie has a key chain factory. Eddie managed to decrease the cost of manufacturing his key chains, and thus to increase the profit from the sale of each key chain from 25% of the selling price to 30% of the selling price. The selling price did not change. If the manufacturing price is now $140, what was it before the decrease?


Let current Selling price = SP

Profit = Selling price - Manufacturing price.

\(0.3 * SP = SP - 140\) -- ( Current profit is 30% of the selling price.)


SP = \(\frac{140}{0.7}\) = 200$

Earlier profile was 25% of selling price and selling price have not changed.

\(0.25 * SP = SP - Manufacturing price (Old)\)

\(Manufacturing price (Old) = 0.75 * SP = 0.75 * 200 = 150$\)

Ans. B
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Re: Crazy Eddie has a key chain factory. Eddie managed to decrease the cos  [#permalink]

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New post 23 Sep 2016, 02:10
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Bunuel wrote:
Crazy Eddie has a key chain factory. Eddie managed to decrease the cost of manufacturing his key chains, and thus to increase the profit from the sale of each key chain from 25% of the selling price to 30% of the selling price. The selling price did not change. If the manufacturing price is now $140, what was it before the decrease?

A. $120
B. $150
C. $160
D. $180
E. $185


New profit is 30% of selling price so
New cost price = 70% of SP = 140
SP = 140 * 10/7 =

Old profit is 25% of SP so old cost price = 75% of SP = (75/100) * 200 = 150

Answer (B)
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Re: Crazy Eddie has a key chain factory. Eddie managed to decrease the cos  [#permalink]

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New post 23 Jan 2018, 07:24
Bunuel wrote:
Crazy Eddie has a key chain factory. Eddie managed to decrease the cost of manufacturing his key chains, and thus to increase the profit from the sale of each key chain from 25% of the selling price to 30% of the selling price. The selling price did not change. If the manufacturing price is now $140, what was it before the decrease?

A. $120
B. $150
C. $160
D. $180
E. $185
Attachment:
Capture.PNG
Capture.PNG [ 2.24 KiB | Viewed 313 times ]

Original Selling Price is \(\frac{140}{70}*75 = 150\)

Answer will be (B)
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Re: Crazy Eddie has a key chain factory. Eddie managed to decrease the cos &nbs [#permalink] 23 Jan 2018, 07:24
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