When sold at a 40% discount, a sweater nets the merchant a 20% profit on the wholesale cost at which he initially purchased the item. By what % is the sweater marked up from wholesale at its normal retail price?
A) 20%
B) 40%
C) 50%
D) 80%
E) 100%
OA E
Source: Veritas Prep
When sold at a 40% discount, a sweater nets the merchant a 20% profit on the wholesale cost at which he initially
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We can let the discount price of the sweater be $60. So the normal retail price is $100. Now we can let n = the wholesale cost, we have:BTGmoderatorDC wrote: ↑Sat Dec 24, 2022 2:42 amWhen sold at a 40% discount, a sweater nets the merchant a 20% profit on the wholesale cost at which he initially purchased the item. By what % is the sweater marked up from wholesale at its normal retail price?
A) 20%
B) 40%
C) 50%
D) 80%
E) 100%
OA E
Source: Veritas Prep
1.2n = 60
n = 60/1.2 = 50
So the wholesale cost is $50 and the sweater must have been marked up by $50 or 100% of its wholesale cost to get to its normal retail price of $100.
Answer: E
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