Question

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%

Answer 1

Answer:

Option B is the answer.

Step-by-step explanation:

Given :

The cost price = $60 (this is the wholesale price)

Let the actual retail price be R.

40% discount on R = 0.6R (selling price of the product )

We know profit = selling price -cost price

$0.6R -60$ = 25% of 60

=> $0.6R -60 =15$

Solving for R now:

$0.6R=15+60$

$0.6R=75$

R = $125

We have to tell the profit/actual retail price percentage.

$\frac{15}{125} \times100=12$%

So, the answer is 12%.