The Houston Chronicle reported on the profits of Oshman’s Sporting Goods. For the fourth quarter, Oshman’s reported net income of $7.3 million. That compares with a net income of $1.5 million the same quarter a year earlier. Net sales for the quarter increased 12.5% to $105.4 million.

(a) What was Oshman’s profit margin on net sales this quarter?

(b) What was the percent increase in net income?

(c) What were last year’s net sales?

(d) What was last year’s profit margin on net sales?

Round to the nearest hundredth percent.

## Math Word Problem Help?

December 13th, 2012 admin

Get a ruler in your hands. Measure things until you start to understand how a ruler works. Measure some stuff and figure out where the center is. Say you measure a book and it’s 7/8″ thick. You look at your ruler and see that every eighth is divided into two sixteenths, so obviously half of 7/8″ is going to be 7/16″. If you write that out you have 1/2 x 7/8 = 7/16. And you notice that 1/2 is divided into 2/4 and then into 4/8 and so on, so you can convert anything to anything by multiplying all the numbers on top and then all the numbers on bottom.

Other rulers are divided into 10 and 100 parts. But an inch is still and inch, so anything on one ruler can be translated to the other ruler. A half inch on one ruler is 5/10 or 50/100 on the other. An eighth inch is just 12.5 marks when you have 100 marks per inch. A metric ruler divides an inch into 25.4 parts, so a half inch would be 12.7 of those parts. Pretty simple, isn’t it? Practice this a bit and people will think you went to wizard school.

Percent is simply a ruler with 100 marks. The only confusion is trying to figure out what the 100 marks represent. I am not trained in this subject, but I will guess that profit margin means $7.3 million compared to $105.4 million. In that case 100 marks are worth 105.4 so each mark is worth 1.054 and 7.3 would be 7.3/1.054 = 6.926 marks or 6.926%.

Quarterly increase uses the previous quarter’s sales as 100 marks and 112.5 marks are worth 105.4 so each mark is worth 0.9369 and 100 marks are worth 93.69 or $93.69 million. See how it’s done?