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A shop owner needs to make a 20% profit on a particular item that cost

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A shop owner needs to make a 20% profit on a particular item that cost  [#permalink]

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New post 18 Apr 2017, 04:51
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A shop owner needs to make a 20% profit on a particular item that cost him $20. He wants to give a 20% discount on the retail price and still net the 20% profit. At what retail price should he set the item?

A. $24.00
B. $28.00
C. $28.80
D. $30.00
E. $32.60

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Re: A shop owner needs to make a 20% profit on a particular item that cost  [#permalink]

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New post 18 Apr 2017, 07:36
CP - 20$
Needs to make a 20% profit on item, he needs to sell the product at 24$
Since we need to give a 20$ discount on the product, we have to markup the product by 25%
Hence the marked price on the product is 30$, which when sold on 20% discount sells for 24$(Option D)
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Re: A shop owner needs to make a 20% profit on a particular item that cost  [#permalink]

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New post 18 Apr 2017, 08:36
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1
The answer is $30 (D)
20% Profit makes cost of the product= 20% of 20 + 20= $24

20% discount and still profit 20%
Discount= 0.2X (X=Sale Price)
Sale Price-Discount= Retail Value (This assures 20% Profit)
X- 0.2X= 24
X=$30
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Re: A shop owner needs to make a 20% profit on a particular item that cost  [#permalink]

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New post 24 Apr 2017, 16:52
Bunuel wrote:
A shop owner needs to make a 20% profit on a particular item that cost him $20. He wants to give a 20% discount on the retail price and still net the 20% profit. At what retail price should he set the item?

A. $24.00
B. $28.00
C. $28.80
D. $30.00
E. $32.60



We are given a shop owner needs to make a 20% profit on a particular item that cost him $20, and he wants to give a 20% discount on the retail price and still net the 20% profit. We can let the retail price be p dollars. Since he is selling the item at a 20% discount, he selling the item for 0.8p dollars. Since he wants to net a 20% profit and the cost is $20, he wants to net a 0.2 x $20 = $4 profit. Thus, we can create the following equation to determine p:

0.8p - 20 = 4

0.8p = 24

p = 24/0.8 = 240/8 = 30

Answer: D
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Re: A shop owner needs to make a 20% profit on a particular item that cost  [#permalink]

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New post 03 May 2017, 05:09
1
Cost Price = 20
Profit to be made = 20%
Therefore, Selling Price = 20 * 1.2 = 24

Let the Retail Price = x
Discount of 20% on Retail Price, implies the new selling price should be = 0.8x
But this is = 20% profit of Cost Price, which is same as selling price of 24
Therefore, 0.8x = 24
Hence, Retail Price = 24/0.8 = 30

Ans D
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Re: A shop owner needs to make a 20% profit on a particular item that cost &nbs [#permalink] 03 May 2017, 05:09
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