A merchant purchased a jacket for $90 and then determined a selling price that equaled the purchase ...
A merchant purchased a jacket for $90 and then determined a selling price that equaled the purchase price of the jacket plus a markup that was 25 percent of the selling price. During a sale, the merchant discounted the selling price by 20 percent and sold the jacket. What was the merchant’s gross profit on this sale?
Answer/Solution
$6
Steps/Work
Let selling price = x
So, x = 90 + 25x/100
Calculating above, x = 120
Selling price = 120
20% Discount on Selling price = 96
So, profit = 96-90 = 6 Answer = C
So, x = 90 + 25x/100
Calculating above, x = 120
Selling price = 120
20% Discount on Selling price = 96
So, profit = 96-90 = 6 Answer = C