Question

"The last time I bought this product, it cost $20.00 but it looks like it costs $29.60 today. Why such a large increase?"

Employee: "The cost to make the product increased, so our company decided to increase the price by _______ ."

Answer 1

Explanation:

The last time the customer bought the product it was $20. The price has increased by $9.60.

Subtract the old price from the new one

$29.60 New Price- $20 Old Price=$9.60

Now Divide the Price Change amount of $9.60 by the Old Price $20

$9.60/$20=0.48

0.48X100%=48%

Answer 2

The company decided to increase the price by $9.60, or by 48%.

Explanation:

To measure the price difference in dollars is simple, just subtract the old price from the new one:

`29.60 - 20 = 9.60`

Divide the price change by the old price to find the price increase in percentage:

`9.60 / 20 = 0.48 \\ 0.48 * 100\% = 48\%`