NandishSS wrote:An electronics store purchased a CD player at a wholesale price of 60$ and then sold it at a 40 percent discount off the original retail price. If the store made a 25 percent profit on the whole price of the CD player, what was the stores profit as a percent of the original retail price?
A. 10%
B. 12%
C. 15%
D. 18%
E. 20%
Since the answer choices are PERCENTS, the given price can be ignored.
We can plug in ANY VALUES that satisfy the relationships in the problem.
The resulting percentage in each case will be the same.
Let R = the retail price, S = the selling price, and W = the wholesale price.
Let R = 100.
Since the CD player was sold at a 40% discount, S = 100 - (40% of 100) = 100-40 = 60.
Since the $60 selling price enables the store to make a 25% profit on the wholesale price, the $60 selling price is 125% of the wholesale price:
60 = (125/100)W
60 = (5/4)W
240 = 5W
W = 48.
Profit = (selling price) - (wholesale price) = 60-48 = 12.
Thus:
(profit)/(retail price) = 12/100 = 12%.
The correct answer is
B.
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