A profit of 30% was made on the selling price of a clock purchased at $140 after giving 20% trade discount and 20% cash discount. What is the list price?
To find the list price, we need to work backwards from the selling price after all the discounts. Let's break down the problem step by step:
1. Calculate the amount of trade discount:
Trade discount = 20% of the purchased price
Trade discount = 20% of $140
Trade discount = 0.2 * $140
Trade discount = $28
2. Calculate the adjusted purchase price after the trade discount:
Purchase price after trade discount = Purchased price - Trade discount
Purchase price after trade discount = $140 - $28
Purchase price after trade discount = $112
3. Calculate the amount of cash discount:
Cash discount = 20% of the purchase price after trade discount
Cash discount = 20% of $112
Cash discount = 0.2 * $112
Cash discount = $22.4
4. Calculate the selling price after all the discounts:
Selling price = Purchase price after trade discount - Cash discount
Selling price = $112 - $22.4
Selling price = $89.6
5. Calculate the profit made on the selling price:
Profit = 30% of the selling price
Profit = 30% of $89.6
Profit = 0.3 * $89.6
Profit = $26.88
6. Calculate the cost price (original purchase price):
Cost price = Selling price - Profit
Cost price = $89.6 - $26.88
Cost price = $62.72
7. Calculate the list price:
List price = Cost price / (1 - Profit percentage)
List price = $62.72 / (1 - 0.30)
List price = $62.72 / 0.70
List price ≈ $89.60
Therefore, the list price of the clock is approximately $89.60.