at harry's discount hardware everything is sold for 20% less than the price marked. If harry buys tool kits for $80, what price should he mark them if he wants to make a 20% profit on his cost?
2007-07-31 08:15:58 · 4 answers · asked by sharizzle 1 in Science & Mathematics ➔ Mathematics
Ok. His cost is $80. So he needs to sell it for $96 to make a 20% profit. ($16 profit on $80 cost is 20%).
$80*(1.2) = $96.
If its a $96 sale price, you need to mark it at $120 to account for a 20% discount. A 20% discount on $120 is $24.
($120) = ($96)/(0.80)
Your final answer is $80*(1.2)/(0.8) = 1.5*$80 = $120.
2007-07-31 08:18:32 · answer #1 · answered by jjsocrates 4 · 1⤊ 1⤋
Last part first. He buys the kits at 80. He wants to make 20%. OK
Cost price + 20% profit = Selling price
If X = selling price, then 80 + 20% of X = X
80 + (20/100)/X= X
80 + .2X = X
80 = X-.2X
80=.8X
80/.8 = X, X = 100
Check: 20% of 100=80, so profit is 20
Hope this helps
2007-07-31 09:18:39 · answer #2 · answered by Grampedo 7 · 0⤊ 2⤋
80 * 1.2 = 96. This would be the 20% markup needed to break even since everything in his store is discounted 20% from the marked price. then to actually make a profit he would take 96 times another 1.2 to get 115.20 as his marked price. So he marks it at 115.20 and then sells it at 96 since all is 20% off in his store. Leaving him a 20% margin on his $80 investment.
2007-07-31 08:25:53 · answer #3 · answered by Jill S 1 · 0⤊ 2⤋
x= 0.8*1.20*80 =$76.80 after 20% rebate
2007-07-31 08:28:53 · answer #4 · answered by santmann2002 7 · 0⤊ 2⤋