A shop owner needs to make a 20% profit on a particular item that cost

Question

A shop owner needs to make a 20% profit on a particular item that cost him $20. He wants to give a 20% discount on the retail price and still net the 20% profit. At what retail price should he set the item?

A. $24.00
B. $28.00
C. $28.80
D. $30.00
E. $32.60

A. $24.00
B. $28.00
C. $28.80
D. $30.00
E. $32.60

pushpitkc · Answer

CP - 20$
Needs to make a 20% profit on item, he needs to sell the product at 24$
Since we need to give a 20$ discount on the product, we have to markup the product by 25%
Hence the marked price on the product is 30$, which when sold on 20% discount sells for 24$(Option D)

Amolpi · Answer

The answer is $30 (D)
20% Profit makes cost of the product= 20% of 20 + 20= $24

20% discount and still profit 20%
 Discount= 0.2X (X=Sale Price)
 Sale Price-Discount= Retail Value (This assures 20% Profit)
 X- 0.2X= 24
 X=$30

JeffTargetTestPrep · Answer

We are given a shop owner needs to make a 20% profit on a particular item that cost him $20, and he wants to give a 20% discount on the retail price and still net the 20% profit. We can let the retail price be p dollars. Since he is selling the item at a 20% discount, he selling the item for 0.8p dollars. Since he wants to net a 20% profit and the cost is $20, he wants to net a 0.2 x $20 = $4 profit. Thus, we can create the following equation to determine p:

0.8p - 20 = 4

0.8p = 24

p = 24/0.8 = 240/8 = 30

Answer: D

grichagupta · Answer

Cost Price = 20
Profit to be made = 20%
Therefore, Selling Price = 20 * 1.2 = 24

Let the Retail Price = x
Discount of 20% on Retail Price, implies the new selling price should be = 0.8x
But this is = 20% profit of Cost Price, which is same as selling price of 24
Therefore, 0.8x = 24
Hence, Retail Price = 24/0.8 = 30

Ans D

Abhishek009 · Answer

Solve in parts -
 
CP = 20 ; P = 4 & SP = 24
 
Thus,  R_p = \frac{24}{80}*100 = 30 , Answer must hence be (D)

7Amulya · Answer

Let the CP=100, then for making 20% profit, SP=120.
20% is given on retail price, let the retail price be x, then 20% discount would be 0.8x.
Now, to still make 20% profit on CP, the discounted price should be equal to 120.
Therefore, 0.8x=120, x=150.
CP is given as 20, means 100->20, 1->20/100. retail price should be= 150*(20/100)=30

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A shop owner needs to make a 20% profit on a particular item that cost

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A shop owner needs to make a 20% profit on a particular item that cost

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