College algebra

Question

Suppose that a merchant buys a patio set from a wholesaler for $180. At what price should the merchant mark the patio set so that it may be offered at a discount of 25% but still give the merchant a 40% profit on his $180 investment 

Answer 1

Hello Chandra.

 

It is easier to solve this question backwards. First, what would be a 40% profit on a $180 investment?

That is just 0.40*$180 = $72.

The selling price is then $180 + $72 = $252.

 

Now, if something is offered at a 25% discount, what % of the original price is it?

100% - 25% = 75% = 0.75. So, the merchant should mark the patio set such that 0.75X = $252.

Solve for X.