The Parts Department Profit Is 12% On A New Magneto. How Much Does The Magneto Cost If The Selling Price Is $145.60.
Basically, it's saying "112% of what is $145.60"? It's 112% since we're talking about profit - the selling price includes 12% profit and the 100% of the original cost.
Set up a proportion:
$\displaystyle \frac{112}{100} = \frac{145.50}{x}$.
I got $130 by cross-multiplying and solving.
As a check, if the cost is $130 and they make 12%, the total selling price should be $130 + 12% of 130.
12% of 130 is $15.60.
$130 + $15.60 = $145.60.
Well, the difficulty with this problem is that the problem as written says the parts department profit is 12%. 12% of WHAT? When we talk percents, we're always taking the percent of something.
Jarod_C assumed that 12% of the final selling price was the profit.
I assumed that 12% of the original cost of the item (prior to markup) was the profit.
Which is it? I'm not sure. I'd assume mine only because mine worked out evenly, no rounding required, but ultimately I think the problem is unclear.
Im in an aviation school right now. My instructor gave this problem to our class. I have not missed a point to date on any tests. The whole class missed this question. He gave the correct answer as $130. I dont disagree that it is an answer to that question. But their is not enough information or the way it is worded to conclude what he was wanting. So we are at 1 for and 1 against. well me i count as 1 i guess i put and the class put the$128 answer. So talk back to me and let me know if i have a legitimate gripe to march up the hill with...