mitko20m wrote:

Confusing.. Please spell out your explanation and write out full solutions. Thanks a lot!

Specific question: how did you get to R=125. did you assume r=100?

% profit on WP=25WP=25

R = 125..

We don't need to assume anything

1) Wholesale Price = $60

2) The store made a 25% profit on the wholesale price, which means, that the store sold the CD player at a cost $60 + 0.25*60 = $75

3) We know that the store sold the CD player at a 40 percent discount of original

retail price AND, at the same time, made 25% profit on the

wholesale price (above). Let's denote X as our original retail price.

Thus, we can easily draw an equation:

$75 = (1-0.4)*X

$75 = 0.6X

X = $75:0.6 = $125

The questions asks: what was the store’s profit as a percent of the original retail price?

The store's profit is 25% of the wholesale price (point 2), which equals 25% of $60 = $15.

And we found

original retail price ($125). Our answer is $15/$125 = 3/25 = 12%.

Hope it is clear