A $10.00 item has a profit margin of 20%. What is the cost of the item??

What do you think the answer is?

X*.viii =__

Problem with your numerals there, rich?

I'm not sure that that's the right way to do it, either.

I think it's asking for ___*i.ii=X

Attempting Roman numeral for 10 X .8=__
But I couldn't get the VIII to remain capped.

I know what you were attempting :)

Do you think what I have written is maybe what the question is asking, instead? As the profit should be a percentage of the cost, not of the price?

Exact-a-mundo!

And where's deedarling through all this?? *poof*

Quote:

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Originally Posted by Capuchin

I know what you were attempting :)

Do you think what I have written is maybe what the question is asking, instead? As the profit should be a percentage of the cost, not of the price?

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Profit margin is defined as (revenue - cost)/revenue. So CaptR is correct.

Capuchin: you're thinking of gross margin, which is calculated as a percent of the product cost, i.e. (Price - Cost)/Cost. The gross margin in this particular exercise is 25%.

Open the site The Math Forum @ Drexel University to get answer this question.