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deedarling · Sep 13, 2007, 05:17 AM

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

Capuchin · Sep 13, 2007, 05:19 AM

What do you think the answer is?

CaptainRich · Sep 13, 2007, 05:34 AM

X*.viii =__

Capuchin · Sep 13, 2007, 05:43 AM

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

CaptainRich · Sep 13, 2007, 05:51 AM

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

Capuchin · Sep 13, 2007, 05:53 AM

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?

CaptainRich · Sep 13, 2007, 05:57 AM

Exact-a-mundo!

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

ebaines · Sep 13, 2007, 06:17 AM

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?

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%.

lalla1995 · Sep 17, 2007, 05:13 AM

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