Anna is analyzing her greeting card business’s profits. She wants more than 40% of the price p of her greeting cards to be profit. If c represents Anna’s cost to make a greeting card, which inequality represents the desired relationship between price and cost?
The answer is c<0.6p.This is due to the fact that Anna wants more than 40 % of her price to be the profit, with profit being price - cost, i.e., p−c. From the given condition it follows that the profit (p−c) has to be greater than 0.4p, representing 40 % of the price. Thus, p−c>0.4p, implying that c<0.6p.