Calculate the price per hour for a service business based on 75% profit with cost per hour of $30.
A) $120 B) $100 C) $130 D) $90 E) $140
I believe the answer is :
30/.25 = $120
75% of the price (profit) = $90........25% of the price (cost) = $30
This is a case of markup based on the sales price, so we have:
If the sale price=P, then,
P - $30=.75P
P -.75P=$30
.25P=$30 divide both sides by .25
P=$30/.25
P=$120 Price per hour. The answer is "A".