A grocery purchased cereal at 40% of its list price and sold it for 90% of its list price. What is its percent gain? Choose the correct choice.
A) 30 B) 65 C) 75 D) 110 E) 125
Cost = 40% of List Price = .4*L
Sale = 90% of List Price = .9*L
Gain Ratio = (Sale - Cost) / Cost = (.9*L - .4*L) / .4*L = .5*L / .4*L = 1.25
Gain Percent = 100 * Gain Ratio = 100 * 1.25= 
<gadget id="calculator">100 * 1.25</gadget>
<output>125</output>
125%= Answer 125
<result>E</result>
A grocery purchased cereal at 40% of its list price and sold it for 90% of its list price. What is its percent gain?