Here's a word problem having to do with percentages, and the answer doesn't make sense. A furniture store is selling a desk for $300. If the store makes a 25% profit on the sale, what is the store's cost for the desk? The answer is $240 but how?
Thanks.
Let's say the cost of the desk for the store is 100%. We know 25% more than that is \$300. Hence, 125% of the cost price of the desk is \$300, and the original price is therefore $100\times \frac{\$300}{125}$. Since $\$300/125$ = 1% of cost price, and then we just multiply by 100 to find the original 100%.
Let us say that $x$ is the cost for the store. The store makes a profit of $25$% which means that the selling price is $1.25 x$; so $1.25 x=300$ then $x=300/1.25=240$.
Use the formula:
$$\frac{\text{percent of change}}{100} = \frac{\text{change in price}}{\text{original price}}$$
Let $x$ = the original price.
Then
$$\frac{1}{4} = \frac{300-x}{x}$$
$x = $ $240.
If the store makes a $25$% on $300.
So, $300 is 125% of store's cost. Let the store's cost is x dollars.
Now, make the proportion, $$\dfrac{300}{x}=\dfrac{125}{100}$$ $$125x=30000$$ $$x=\dfrac{30000}{125}$$ $$x=240$$ So, the store's cost is $240.
