Items are sold by a retailer for a price of $30 each, which represents

Given:
1. Items are sold by a retailer for a price of $30 each, which represents a 20 percent markup over the cost paid by the retailer for each item.
2. Of 50 items ordered, 30 are sold, and 10 are returned to the manufacturer for a refund of 40 percent of the dealer's initial cost.
3. The remaining inventory is sold

Asked: What is the retailer's approximate profit or loss as a percent of the retailer's initial cost for the 50 items?

1. Items are sold by a retailer for a price of $30 each, which represents a 20 percent markup over the cost paid by the retailer for each item.
Cost price of each item = $30/1.2 = 25
Total cost price of 50 items = 50 * $25 = $1250

2. Of 50 items ordered, 30 are sold, and 10 are returned to the manufacturer for a refund of 40 percent of the dealer's initial cost (40%*25=$10).
3. The remaining inventory is sold
Total Sales = 30 * $30 +10* $10 + 10 *$30 = $1300
Total profit = Total sales - Total Costs = $1300 - $1250 = $50

The retailer's approximate profit or loss as a percent of the retailer's initial cost for the 50 items = $50/(50*25) = (5000/1250)% = 4%

IMO D