Answered

An electronics store purchased a CD player at a wholesale price of 60$ and then sold it at a 40 percent discount off the original retail price. If the store made a 25 percent profit on the whole price of the CD player, what was the stores profit as a percent of the original retail price?A. 10%B. 12%C. 15%D. 18%E. 20%

Answer :

Answer:

Option B is the answer.

Step-by-step explanation:

Given :

The cost price = $60 (this is the wholesale price)

Let the actual retail price be R.

40% discount on R = 0.6R (selling price of the product )

We know profit = selling price -cost price

[tex]0.6R -60[/tex] = 25% of 60

=> [tex]0.6R -60 =15[/tex]

Solving for R now:

[tex]0.6R=15+60[/tex]

[tex]0.6R=75[/tex]

R = $125

We have to tell the profit/actual retail price percentage.

[tex]\frac{15}{125} \times100=12[/tex]%

So, the answer is 12%.

Other Questions