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Math Help - Relation between sales and %profit.

  1. #1
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    Relation between sales and %profit.

    The question is
    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
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  2. #2
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    Re: Relation between sales and %profit.

    Hello, MikeNoob!

    You're making hard work out of this problem . . .


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

    The ans is 44:45

    \text{Suppose that normally he sells }x\text{ radios.}
    \text{Then his profit is: }\,0.45x\text{ dollars.}

    \text{During the sale, he sells }\,x + 0.10x \,=\,1.10x\,\text{ radios.}
    \text{Then his profit is: }\,0.40(1.10x) \,=\,0.44x\text{ dollars.}

    \text{The ratio is: }\:\frac{\text{new profit}}{\text{old profit}} \;=\;\frac{0.44x}{0.45x} \;=\;\frac{44}{45} \;=\;44:45
    Thanks from MikeNoob
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  3. #3
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    Re: Relation between sales and %profit.

    Thanks that was simple .
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