Relation between sales and %profit.

The question is

Quote:

Mr.Cutler usually makes a 45% profit on every radio he sells .During a sale he reduces his margin of profit to 40% whiles his sales increase 10%.What is the ratio of his new total profit to the original profit.

The ans is 44:45

I could solve this problem however the the increase in sales is throwing me off . If i dont consider increase in sales i get 8:9. Is there a relation between increase in sales to the profit earned?

Here is how i did it

Let the radio price be p.

--Now Before the sale.

Selling price = 29p/20)

Profit = (29/20)p - p = (9/20)p

--After Sale Price

Selling price =7p/5

Ratio -

New total profit : original profit = 8:9

Re: Relation between sales and %profit.

Re: Relation between sales and %profit.

Thanks that was simple :).