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MATH(markup and markdown )

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A retailer bought an item for RM40 less 10% and 5%.If the retailer intends to make a gross profit of 25% of the cost by selling the item at a 60% discount,find the list price.

  • MATH(markup and markdown ) -

    I will assume cost price is 40 less 10%,5%

    so actual cost price = 40(.9)(.95) = 34.20

    let list price be x
    .4x = 34.20(1.25)
    x = 34.20(1.25)/.4 = 106.875

    I interpreted "25% of the cost" as the actual cost, not the stated RM40 less 10%, 5% "

    check:
    60% discount on 106.875 = 64.125
    for a selling price of 106.875-64.125 = 42.75
    profit = 42.75 - 34.20 = 8.55
    percentage profit = 8.55/34.2 = .25 or 25%

    All works out.

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