Question

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 wholesale price of the CD player, what was the store’s profit as a percent of the original retail price?

Answer 1

Answer:

Profit Percent = 12% of retail price.

Explanation:

Given that:

Whole sale price = $60

Let Retail price = R

Then according to statement that Actual sale price is 40%(0.4) of Retail price:

Actual Sale Price = R - 0.4R = 0.6 R    ......... eq 1

As profit on whole sale price is 25% so:

Profit = 0.25 * 60 = 15

Using profit we can have actual price as:

Actual Sale Price = $60 + 15 = $75    ............. eq 2

Equating eq 1 and eq 2:

0.6 R = $75

Dividing both sides by 0.6 we get:

Retail Price = R = 75/0.6 = $125

As

Profit =  Actual Sale Price - Whole Price

Profit = $75 - $60

Profit = $15

Now expressing profit as a percent of Retail price:

Profit percent = $(15/215) = $(3/25) = 12% of RETAIL PRICE

I HOPE IT WILL HELP YOU!