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# Suits at a local clothing store are discounted 20 percent. Despite the

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Suits at a local clothing store are discounted 20 percent. Despite the  [#permalink]

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20 Oct 2017, 00:16
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25% (medium)

Question Stats:

87% (01:10) correct 13% (01:54) wrong based on 67 sessions

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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

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Re: Suits at a local clothing store are discounted 20 percent. Despite the  [#permalink]

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20 Oct 2017, 00:48
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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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Re: Suits at a local clothing store are discounted 20 percent. Despite the  [#permalink]

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20 Oct 2017, 09:45
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Let the pre-discounted retail price be X.
Cost price of each suit, CP = 200
Discount price=0.8X
Profit % = 60%= $$\frac{(0.8X - CP)}{CP}$$ * 100 = $$\frac{(0.8X-200)}{200}$$*100
0.6=$$\frac{(0.8X-200)}{200}$$
120=0.8X-200
X= $$\frac{320}{0.8}$$ = 400

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20 Oct 2017, 11:06
Given cost = 200, and profit = 60% of cost. So Selling price = 200 + 60% of 200 = 200 + 120 = 320

But this is the price after a discount of 20%. So if prediscount retail price is P, then
80% of P (discount of 20%) = 320
or P = 320/0.8 = 400

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Re: Suits at a local clothing store are discounted 20 percent. Despite the  [#permalink]

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24 Oct 2017, 06:40
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

If we let the original selling price of the suits = n, the discounted price is 0.8n, and thus:

0.8n - 200 = 0.6(200)

0.8n - 200 = 120

0.8n = 320

n = 400

Thus, the original price is 400.

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Re: Suits at a local clothing store are discounted 20 percent. Despite the &nbs [#permalink] 24 Oct 2017, 06:40
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