Problem Solving

BTGmoderatorDC wrote: ↑

Sat Dec 24, 2022 2:42 am

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

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:

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