Subject: percentages Name: Hyacinth Who are you: Other I just do not understand percentages...if the cost of a product is \$1.20, how can I make a profit of 55% ? how do I calculate this problem? Thank you for your help Hyacinth Hello Hyacinth. "per cent" means simply "per hundred". That means that if 20% of your monthly budget is on food, then you buy \$20 of food for every \$100 you earn. When working out profit, it works the same way, but there is a twist to it. In your question, you are asked what price you should sell a product for if you want to make 55% profit when it costs you \$1.20. Another way of phrasing it is this: You sell a product and keep 55% of the selling price and spend the rest (45%) on your production cost. In this case 45% of that selling price equals \$1.20. If you use algebra, then call the selling price P and: P(45%) = \$1.20 If you divide by (45%) on both sides, then it cancels on the left side and you have: P = \$1.20 / (45%) Remember that percentages are just amounts "per hundred". So 45% = 45 / 100 = 0.45. Therefore, P = \$1.20 / 0.45 = \$2.67 So the selling price should be \$2.67 if you want 55% profit on an item that costs you \$1.20 to make. Hope this helps, Stephen La Rocque.