A computer company gives a discount of 10 % on a new piece of software. If it makes a profit of 7%, what percent does the marked price exceed the cost price?
To find the percent by which the marked price exceeds the cost price, we can use the following steps:
1. Let's assume the cost price of the software is $100.
2. Given that the computer company gives a 10% discount on the software, the selling price after the discount would be 100 - (10% of 100) = $90.
3. Now, let's calculate the profit percentage. We know that the company makes a profit of 7%, which means the selling price is 107% of the cost price. So, the selling price is 107% of $100 = $107.
4. The percent by which the marked price exceeds the cost price can be calculated by finding the difference between the selling price and the cost price, dividing it by the cost price, and then multiplying by 100.
((selling price - cost price) / cost price) * 100 = ((107 - 100) / 100) * 100 = 7%.
Therefore, the marked price exceeds the cost price by 7%.