Question

A store’s selling price of $2,240 for a certain computer would yield a profit of 40 percent of the store’s cost for the computer. What selling price would yield a profit of 50 percent of the computer’s cost?
A.$2,400
B.$2,464
C.$2,650
D.$2,732
E.$2,800

Answer 1

Answer:

Correct option is (A)

Explanation:

Given:

40% gain would be yielded on selling price of $2,240.

Let cost price be x.

Cost price will be 140% or 1.4 times cost price is selling price. It can be written in the following equation form:

1.4x = 2,240

x = 2,240 / 1.4

x = $1,600

Cost price = $1,600

Desired profit = 50%

Selling price = 1.5 times cost price

                      = 1.5 × 1,600

                      = $2,400