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Re: By selling 12 toffees for a dollar, a shopkeeper loses 20% [#permalink]
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TheNightKing wrote:
By selling 12 toffees for a dollar, a shopkeeper loses 20%. In order to gain 20% in the transaction, he should sell the toffees at the rate of how many toffees for a dollar?
(a) 8
(b) 6
(c) 4
(d) 3
(e) 10


We can let C = the cost of the 12 toffees and R = the revenue from the sale of the 12 toffees. We can create the equation:

Profit = -0.2C

R - C = -0.2C

R = 0.8C

1 = 0.8C

1/0.8 = C

1.25 = C

Thus, 12 toffees cost $1.25. In order to make a 20% profit on 12 toffees, the sale price should be 1.25 * 1.2 = $1.50. Then, if 12/1.5 = 8 toffees are sold for $1, a profit of 20% will be realized.

Answer: A
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Re: By selling 12 toffees for a dollar, a shopkeeper loses 20% [#permalink]
Simply, When 12 toffe sold for 1 doller shopkeeper loses 20%. So this price is actually 80%.
We have to make it 120%

Therefore, \(\frac{12*(100-20)}{(100+20)}\)
\(= \)\(\frac{12*80}{120}\)
\(= 8\)

Answer is A
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Re: By selling 12 toffees for a dollar, a shopkeeper loses 20% [#permalink]
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