Bunuel wrote:

Suits at a local clothing store are discounted 20 percent. Despite the discount, the store owner enjoys a net profit (discount price minus cost) equal to 60 percent of the cost of the suits. If the suits cost the clothing store owner $200 each, what was the prediscount retail price of each suit?

(A) $300

(B) $400

(C) $500

(D) $600

(E) $700

Since the suits are discounted at 20%, the price on the suits is 0.8x(if the prediscounted retail price of the suit is x)

It has been given that the profit(discount price - cost) = 60% of the cost.

Let the cost be C

Therefore, \(0.8x - C = 0.6C => 0.8x = 1.6C => x = 2C\)

Since the cost of the suit is $200, the prediscounted retail price is $400(Option B)

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