In a cost problem (CAPS), you first add

In a cost problem (CAPS), you first add

• A. the percent that the price has increased to 100%
• B. the percent that the price has decreased to 0%
• C. the tax rate
• D. the original price

Answer: (A)

When you have a price that increases by a percent, you translate that increase into a multiplier by starting with the original price as 100% and adding the increase percent to it. This gives you the final percentage of the original price to use as the multiplier. For example, a 20% increase means you’re dealing with 120% of the original price, so you multiply by 1.20. This is why you first add the percent increase to 100%. The other options don’t fit because the tax rate is a separate adjustment, decreasing to zero would not reflect an increase, and using the original price alone omits the increase.

When you have a price that increases by a percent, you translate that increase into a multiplier by starting with the original price as 100% and adding the increase percent to it. This gives you the final percentage of the original price to use as the multiplier. For example, a 20% increase means you’re dealing with 120% of the original price, so you multiply by 1.20. This is why you first add the percent increase to 100%. The other options don’t fit because the tax rate is a separate adjustment, decreasing to zero would not reflect an increase, and using the original price alone omits the increase.