If a part sells for $145.60 and the profit is 12 percent, what is the cost of the part?

To find the cost of the part when given the selling price and profit percentage, you need to understand the relationship between cost, selling price, and profit.

The selling price of the part is established as $145.60, and the profit is stated to be 12 percent of the cost. To determine the cost, start by expressing the selling price in terms of the cost. The equation for this relationship can be stated as:

Selling Price = Cost + Profit

Since profit is calculated as a percentage of the cost, you can also express profit as:

Profit = 12% of Cost = 0.12 * Cost

Substituting this back into the selling price equation gives:

Selling Price = Cost + 0.12 * Cost

Selling Price = 1.12 * Cost

Now, rearranging the equation to find the cost gives:

Cost = Selling Price / 1.12

Substituting the selling price of $145.60 into the equation:

Cost = $145.60 / 1.12

Cost = $130.00

This calculation confirms that the cost of the part is indeed $130.00. Hence, the choice indicating $130.00 correctly represents the cost of the part when the