A clothing store purchased a pair of pants for $81 and was selling it at a price that equaled the ...
A clothing store purchased a pair of pants for $81 and was selling it at a price that equaled the purchase price of the pants plus a markup that was 25 percent of the selling price. After some time a clothing store owner decided to decrease the selling price by 20 percent. What was the clothing store's gross profit on this sale?
Answer/Solution
$5.4
Steps/Work
Sale Price(SP) = 81 + Markup(MP)
--> Mp = SP-81
and given MP=SP/4 ( 25% is 1/4th)
so SP/4= SP-81
3SP/4= 81
SP=108
Now a discount of 20% is given so NEW SP is .8 *108 =86.4
Profit=86.4-81 =5.4$
Answer is B
--> Mp = SP-81
and given MP=SP/4 ( 25% is 1/4th)
so SP/4= SP-81
3SP/4= 81
SP=108
Now a discount of 20% is given so NEW SP is .8 *108 =86.4
Profit=86.4-81 =5.4$
Answer is B