A toy store’s gross profit on a computer game was 10 percent of the co

Question

A toy store’s gross profit on a computer game was 10 percent of the cost of the game. If the store increased the selling price of the game from $44 to $46 and the cost of the game remained the same, then the store’s gross profit on the game after the price increase was what percent of the cost of the game?

A. 10.5%
B. 11%
C. 12.5%
D. 13%
E. 15%

A. 10.5%
B. 11%
C. 12.5%
D. 13%
E. 15%

Kurtosis · Answer

Profit = 10% --> If Cost price = x then Selling price = 1.1x

1.1x = 44 --> x = 40
New Selling Price = 46 --> Profit = 6

Profit percentage = 6/40 = 3/20 = 15%

Answer: E

Vinayak Shenoy · Answer

IMO E
A toy store’s gross profit on a computer game was 10 percent of the cost of the game.
Current selling Price of the game = $44 This means cost of the game= $40
New selling price of the game= $46
Gross profit %= (46-40)/40= 3/20= 15%

JeffTargetTestPrep · Answer

We are given that a toy store’s gross profit on a computer game was 10 percent of the cost of the game. Since we know that revenue - cost = profit and we are given that profit = 0.1 x cost, we can create the following equation, in which r = revenue and c = cost:

r - c = 0.1c

r = 1.1c

Since the original selling price (or revenue) was $44, we can substitute 44 for r in the equation r = 1.1c and determine c.

44 = 1.1c

440 = 11c

40 = c

If the price was increased to $46, the new profit would be 46 - 40 = $6.

Finally we can determine what percent the profit was of the cost.

(profit/cost) x 100%

(6/40) x 100%

(3/20) x 100%

15%

Answer: E

bumpbot · Answer

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A toy store’s gross profit on a computer game was 10 percent of the co

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