A product cost $100, 90% of the price being production cost,the remainder being tax, if the govt raises the tax by 50%, by how much in % will the factory have to reduce its production cost to keep he price still at $100

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  1. $10 is tax. 50% of that is $5, so reduce the cost by that much. What % of 90 is 5?

    Just wondering -- where is the profit needed to make money?

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