SOLUTION: The Ajax Company can sell gidgets for $10.97 a piece. What does it cost the company to manufacture each gidget if it makes a profit of 8%. The answer that my book has, I am n

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Question 7139: The Ajax Company can sell gidgets for $10.97 a piece. What does it cost the company to manufacture each gidget if it makes a profit of 8%.
The answer that my book has, I am not getting.
I tried doing a proportion
Yet, that is not the answer
I multiplied $10.97 x 8% and I still subtract that from $10.97 and I did not get the answer. Please help me. I am frustrated.
Answer by prince_abubu(198) (Show Source):
You can put this solution on YOUR website!
Alright. I take it that the price of the widget ($10.97) ALREADY includes the 8% profit. The cost to manufacture widget, then, is some price lower than the $10.97.

So, you don't know what the "original" price is, so let's call it p. You know that they jacked up whatever p is by 8% to get to $10.97. The resulting equation would then be . Combine the like terms, then you'll get . When you solve for P, you should get the original (manufacturing) price of about $10.16.