sales and profit problem

[prithibi]

mr. cutler usually makes a 45% profit on every radio he sells. during a sale, he reduces his margin of profit to 40%, while his sales increases by 10%. what is the ratio of his new total profit to the original profit?

someone help me solving this prblm and plz explain why the result comes 44:45 and how.

wt are relationship between profit on sales or profit on cost? hw do they differ?

i feel stupid coz i cant solve those type of questions

[Goldust]

Let the original sales amount be x. Then the profit you make would be .45x. If I reduce the profit margin to 40% and increase sales by 10%, this becomes equal to .40*1.1*x = .44x. Taking the ratio, we get 44/45.

Profit on sale is defined as the percentage profit w.r.t sale price, whereas profit on cost is defined w.r.t. the cost price. So, profit on sale = (S.P-C.P)/S.P * 100 whereas profit on cost is (S.P.-C.P)/C.P*100. If nothing is mentioned, then profit is always taken w.r.t cost.

[sporty.arjun]

there is another method....similar...assume he is makin radios at rs.100....and he makes 100 radios....so 4 the first case he sells at rs.145(45% profit)...total sales is 145*100=14500...profit is Rs 4500(since C.P.=100*100=10000)....4 the second case he sells at rs.140(40% profit)...total sales is 145*110=15400..(110 bcoz 10%increase in sales).profit is Rs 4400(since C.P.=100*110=11000)....hence ratio is 44/45

[prithibi]

now its easy. many many thnx

[prithibi]

oops!
one extra question.
if 10% profit is attain in sales. what percent of profit is attained in cost?
hw could i go with it?

[Goldust]

S.P - C.P = 0.1S.P. Hence, C.P. = 0.9S.P.

Therefore, (S.P- C.P)/C.P = 0.1/0.9 = 11.11%

[prithibi]

u r so sweet!
it is amazing!

[mystic87]

ditto! thx Goldust