A store owner buys clothes at wholesale and adds 80% to the wholesale price to set the retail price. The retail price of a
pair of pants is $36.00. What is the wholesale price?
1.80x = 36
x = 20
To find the wholesale price, we need to reverse the process. The retail price is obtained by adding 80% to the wholesale price.
Step 1: Let's assume the wholesale price is "W".
Step 2: The store owner adds 80% of the wholesale price to set the retail price. So, the retail price can be calculated as:
Retail Price = Wholesale Price + 80% of Wholesale Price
In formula form, this can be written as:
$36.00 = W + 0.8W
Step 3: Combine like terms on the right side of the equation:
$36.00 = 1.8W
Step 4: Divide both sides of the equation by 1.8 to solve for W:
W = $36.00 / 1.8
W = $20.00
Therefore, the wholesale price of a pair of pants is $20.00.