Hi All,
I'm a bit fan of using a combination of TESTing VALUES here (as chetan2u has shown) and that's exactly how I would have solved this problem. It can also be approached with algebra though:
X = wholesale cost of the sweater.
[1 + (N/100)]X = retail price --> N/100 is the percent markup in price
We're told that the sweater is sold at a 40% discount of the retail price, which means that the discount price is 60% of the original retail price. The discounted price of the sweater is:
.6{1 + (N/100)]X
We're told that this price nets the merchant a 20% profit on the wholesale cost, so we have one big equation….
.6[1 + (N/100)]X = 1.2X
Now we can cancel out the Xs:
.6[1 + (N/100)] = 1.2
And do algebra….
[1 + (N/100)] = 2
N/100 = 1
N = 100
Meaning that the original percent markup was 100%
Final Answer:
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Rich
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