Profit Margin-A car dealer sells Wilsons, which have a sticker price of $9,779. Her usual profit margin on this model is 12%. She wants to increase her profit by $391.16. What would her new profit margin be?
15.4% 19.6%
16.3%
I've gotten to the point where i know $1564.64 is the amount she wants and im pretty sure i need to times her initial cost by each percent to get another number to add on to see if it makes the price she wants, but im not sure how to factor in the percents since they are not whole, am i on the right track?

Question

Profit Margin-A car dealer sells Wilsons, which have a sticker price of $9,779. Her usual profit margin on this model is 12%. She wants to increase her profit by $391.16. What would her new profit margin be?
	15.4%		19.6%
	16.3%		
I've gotten to the point where i know $1564.64 is the amount she wants and im pretty sure i need to times her initial cost by each percent to get another number to add on to see if it makes the price she wants, but im not sure how to factor in the percents since they are not whole, am i on the right track?

jim_thompson5910 · Answer

you don't need to know the final cost of the product

all you do is divide the profit margin by the sticker price

then you multiply by 100 to get a percentage

jim_thompson5910 · Answer

oh wait, nvm, missed a big step one sec

anonymous · Answer

Hmm i got 81491 and then i timed by 100 and got 8149166

jim_thompson5910 · Answer

her profit margin is 12% of the sticker price

so 12% of 9779 = 0.12*9779 = 1,173.48

this is her old profit

jim_thompson5910 · Answer

she wants to bump this profit up by 391.16

jim_thompson5910 · Answer

1,173.48+391.16 = 1,564.64

jim_thompson5910 · Answer

so this is the new profit she wants, 1,564.64 dollars

now you divide this by the sticker price and multiply by 100


1,564.64/9779 = 0.16


0.16*100 = 16% profit margin

jim_thompson5910 · Answer

hmm 16% isn't on the list...closest thing is 16.3%

anonymous · Answer

Thank you so much ! Your very good with this stuff, I will try 16.3

jim_thompson5910 · Answer

thanks, not good enough lol 

not sure why 16% isn't on the list, i might be missing something?

jim_thompson5910 · Answer

can you double check all the numbers and make sure there are no typos?

anonymous · Answer

Im not sure either it is online practice for summer school ive been having trouble with, only those 3 
	15.4%		19.6%
	16.3%
:/

anonymous · Answer

3 answers *

jim_thompson5910 · Answer

i meant the other numbers (like 9779)

jim_thompson5910 · Answer

stuff like that

anonymous · Answer

Oh! yes i can!

jim_thompson5910 · Answer

thanks

anonymous · Answer

No, thank you!

anonymous · Answer

I checked it all and got the same, 16%, at first i wasn't sure what you meant thats why i took so long, sorry!

jim_thompson5910 · Answer

that's ok, thanks for going back and double checking for me

you'll have to bring it up with your teacher and s/he will know how to fix it

anonymous · Answer

Thank you!

jim_thompson5910 · Answer

sure thing

anonymous · Answer

I will do that