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

Option B is the answer.

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.

`(15)/(125) *100=12`%

So, the answer is 12%.