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rxs0005
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A dealer sells goods at a profit of 10% . if cost of goods 29 Jan 2005, 05:04
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A dealer sells goods at a profit of 10% . if cost of goods doubles and profit becomes 1/4th of present value, then the actual profit now is what percent of the previous profit.



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MA
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A dealer sells goods at a profit of 10% . if cost of goods 29 Jan 2005, 06:54
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not much clear..............................

profit, before = S0-C0= .1S0(10% of selling price)

profit, after = Sn-Cn=1/4 of present value(S0?) = .25 S0

profit, after/Profit, before = .25 S0/.1S0 = 250%???????
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A dealer sells goods at a profit of 10% . if cost of goods 29 Jan 2005, 09:18
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whenever you have such questions, pick a number!

so lets say orig. cost= $100.

10% of 100= $10 profit!

cost now doubles....to $200

new profit 1/4 of $200= $50

previous proft was $10. so new profit is $50/$10 *100= 500%

I see what MA did I think the catch here...I first did it the way he did, but then realized we are actually comparing actual profit values not %profit of the cost....
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A dealer sells goods at a profit of 10% . if cost of goods 29 Jan 2005, 13:22
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What seems unclear to me about the question, is the phrase "1/4 of the present value". Question is present value of what? Present value of the cost? The selling price? The profit? The percentage of profit? I can't solve the question unless I know what it means.
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A dealer sells goods at a profit of 10% . if cost of goods 30 Jan 2005, 07:47
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OA = 50%

here present value means the current value of the profit so 10% is profit so 1/4th the present value is 2.5%
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A dealer sells goods at a profit of 10% . if cost of goods 30 Jan 2005, 09:29
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RXS
could you divulge more details....these wordings in word problems always are very confusing for me....
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A dealer sells goods at a profit of 10% . if cost of goods 30 Jan 2005, 10:12
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rxs0005
A dealer sells goods at a profit of 10% . if cost of goods doubles and profit becomes 1/4th of present value, then the actual profit now is what percent of the previous profit.
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Ok lets see if we can solve this now, with the explanation about the profit.

Profit=Price(P)-Cost(C)=10%*C
C1=2C
Profit1(percentage)=1/4*10%=2.5%
Profit1/Profit=2.5%C1/10%C=1/4*2=1/2=50%

This question is not good, as when you say profit is 1/4 of the present value (of profit), you should be talking about the $ amount, instead of the percentage, since profit is defined as your sales minus your cost, and not a percentage in itself.



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