A computer company gives a discount of 10% on a new piece of software. If it makes a profit of 4%, what percent does the marked price exceed the cost price?

Question

A computer company gives a discount of 10% on a new piece of software.  If it makes a profit of 4%, what percent does the marked price exceed the cost price?

mertsj · Answer

The selling price was 1.04 times cost since they made a 4% profit.  SP=1.04c
 
The marked price was 1.10 times the selling price. Marked Price=1.10SP

Substitute.

MP = 1.10(1.04c)=1.144c

So the marked price exceeds the cost by 14.4%