If a dealer could get his goods for 8% less while keeping his selling price fixed, his profit, based on cost, would be increased to (x+10)% from his present profit of x%, which is

Correct answer marked below

12%

15%

Correct

30%

50%

75%

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Explanation

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Official Explanation

Official

Let initial cost be 100. Then profit =

x

.

After the cost gets reduced by 8%, new cost =

100 - 8 = 92

.

Thus profit will be up by 8, hence new profit =

x + 8

.

New profit% based on the cost reduction =

\frac{\text{new profit}}{\text{new cost}} = \frac{x+8}{92}

.…

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What this question tests

Your ability to apply GMAT math concepts to solve a multi-step problem quickly and accurately. At the 705-805 level, accuracy and speed both matter.

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