A computer appliance dealer bought a computer at a wholesale price of

Question

A computer appliance dealer bought a computer at a wholesale price of $500 and then sold it at a 20 percent discount off the suggested retail price. If the dealer made a 12 percent profit on the wholesale price, what was the suggested retail price of the computer?

A) $560
B) $580
C) $660
D) $700
E) $730

A) $560
B) $580
C) $660
D) $700
E) $730

sashiim20 · Accepted Answer

Wholesale price of computer = $500
Let the retail price be X.
Dealer made 12% profit on wholesale price = 20% discount on retail price
112% of 500 = 80% of X
$\frac{112}{100}$ x 500 = $\frac{80}{100}$ * X
560 = $\frac{80}{100}$ * X
X = $\frac{560 * 100}{80}$ = $700
Answer D...

Bunuel · Answer

The suggested retail price = x

The compute was actually sold for 0.8*x (at a 20 percent discount).

The dealer made a 12 percent profit on the wholesale price, so 0.8x = 500*1.12 --> x = 700.

Answer: D.

michaelkalend · Answer

Thank you so much, Bunuel! You are awesome!

utkarshthapak · Answer

Option D, I did it this way:
Find out the SP of the product, which will be $560 at 12% profit. Now we need to find RP from the given options.
So hit and trial with a little common sense for me and $700 will be the answer. I believe a lot of arithmetic questions can be done with hit and trial but not all.

JeffTargetTestPrep · Answer

We can let r = the suggested retail price of the computer.
 
Since the dealer sold the computer at a 20% discount off the suggested retail price, the dealer sold the computer for 0.8r. Since the dealer made a 12% profit, we can create the following equation to determine r:
 
revenue - cost = 0.12(cost)
 
0.8r - 500 = 0.12(500)
 
0.8r - 500 = 60
 
0.8r = 560
 
r = 560/0.8 = 700
 
Answer: D

hassan233 · Answer

"bought a computer at a wholesale price of $500" 
W = Wholesale price
W = 500

"sold it at a 20 percent discount off the suggested retail price"
S = Selling price
R = Retail price
S = (.8)(R)

"the dealer made a 12 percent profit on the wholesale price"
aka, the dealers selling price is 12% of the wholesale price + the wholesale price
S = (1.12)(W)

(.8)(R) = (1.12)(W)
(.8)(R) = (1.12)(500)
(.8)(R) = 560
(4/5)(R) = 560
R = 560 * (5/4)
R = 2800/4
 R = 700

bumpbot · Answer

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A computer appliance dealer bought a computer at a wholesale price of

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