For questions involving profit, should we always consider three trpes of variables? Original Cost, Market Price and Selling Price? Here is one of those questions,
A merchant sells an item at a 20% discount, but still makes a gross profit of 20% of the cost. Whta percent of the cost would the gross profit on the item have been if it had been sold without the discount?
1. 20% 2. 40% 3. 50% 4. 60% 5. 75%
I made the mistake of taking the discount off the "cost" as well as the increase in the profit of the "cost". I wanted to make sure I understannd the concept with these kind of "profit" questions.
A merchant sells an item at a 20% discount, but still makes a gross profit of 20% of the cost. Whta percent of the cost would the gross profit on the item have been if it had been sold without the discount?
1. 20% 2. 40% 3. 50% 4. 60% 5. 75%
I made the mistake of taking the discount off the "cost" as well as the increase in the profit of the "cost". I wanted to make sure I understannd the concept with these kind of "profit" questions.
