computer discount

[vishugogo]

A computer store offers employees a 20% discount off the retail price. If the store purchased a computer from the manufacturer for $1000 dollars and marked up the price 20% to the final retail price, how much would an employee save if he purchased the computer at the employee discount (20% off retail price) as opposed to the final retail price.

A) $1,000
B) $960
C) $240
D) $200
E) $150

kindly help....

[anuprajan5]

The answer is C

Cost price to the store - 1000
Final retail price after 20% markup - 1200

Employee discount on the retail price is 20%. Therefore 0.8*1200 = 960.

[spoiler]Difference in employee price and final retail = 240[/spoiler]

Regards
Anup

[Brent@GMATPrepNow]

A computer store offers employees a 20% discount off the retail price. If the store purchased a computer from the manufacturer for $1000 dollars and marked up the price 20% to the final retail price, how much would an employee save if he purchased the computer at the employee discount (20% off retail price) as opposed to the final retail price.

A) $1,000
B) $960
C) $240
D) $200
E) $150

kindly help....

Original price: $1000
20% mark up = (0.2)(1000) = $200
Retail price = $1200

20% employee discount = (0.2)(1200) = [spoiler]$240 = C[/spoiler]

Cheers,
Brent