Question

A particular style of earrings costs the retailer $80 per pair. At what price should the retailer mark them so he can sell them at a 20%discount off the original price and still make 35 % profit on his cost?

Answer 1

First, solve for how much is 35% profit on cost.

`\begin{gathered} 35\%\Rightarrow0.35 \\ \\ \text{Multiply it with the cost} \\ \$80\cdot0.35=\$28 \\ \\ \text{Add it to the original cost and we get} \\ \$80+\$28=\$108 \end{gathered}`

Next, divide by 80%, to account for 20% discount of the price.

`\begin{gathered} 80\%\rightarrow0.8 \\ \$108/0.8=\$135 \end{gathered}`

Checking:

$135 with 20% discount is $108

$80 with 35% profit is $108

Therefore, the price that the retailer should mark them is at $135.