The China's Best Restaurant chain had a 12% return on a $60,000 investment in new ovens. The investment resulted in increased sales, and the resultant increase in income amounted to 4% of the increase in sales. The amount of the increase in sales must have been
A) $7,200.
B) $60,000.
C) $180,000.
D) $500,000.

Question

Quizplus · Accepted Answer

Let x be the amount of increase in sales. Then:

- The return on the investment in ovens is 12% of $60,000, which is 0.12 * $60,000 = $7,200.
- The increase in income is 4% of x, which is 0.04x.

We can set up the equation:

$7,200 = 0.04x

Solving for x, we get:

x = $180,000

Therefore, the amount of the increase in sales must have been $180,000.

The China's Best Restaurant Chain Had a 12% Return on a $60,000