The cost of a product to a retailer is $3.40. If the retailer wishes to make a profit of 20% on the selling price, at what price should the product be sold?

Question

The cost of a product to a retailer is $3.40. If the retailer wishes to make a profit of 20% on the selling price, at what price should the product be sold?

Answer 1

If a profit of 20% of the cost is desired, then the selling price should be 1.20 times cost.

The multiplier 1.20 represents 100% + 20% 

So your answer is 1.2(3.4) dollars. Do this multiplication.