Question

IBM states that it makes a 30% profit over its expenses for producing hard drives. IBM sells each hard drive for $ 390. How much does it cost IBM to make each hard drive?

Answer 1

$300.

Explanation:

Let x represent original cost of each hard drive.

We have been given that IBM states that it makes a 30% profit over its expenses for producing hard drives.

The cost of each hard drive after profit would be x plus 30% of x.

`\text{The cost of each hard drive after profit}=x+(30)/(100)x`

`\text{The cost of each hard drive after profit}=x+0.30x`

`\text{The cost of each hard drive after profit}=1.30x`

We have been given that IBM sells each hard drive for $390. We can represent this information in an equation as:

`1.30x=\$390`

`(1.30x)/(1.30)=(\$390)/(1.30)`

`x=\$300`

Therefore, the original cost of each hard drive is $300.

Answer 2

300

Explanation:

IBM makes 30% profit = 130% of product value

390=130x

390/130=x

3=x

100*x=cost of product

300