find the marketed price of the article

Question

an electronic dealer offers a discount of 10%on the marketed price of electronic . he still makes a profit of 20%. if is gains on the sale of one electronic item is 4500, find the marketed price of the article

Answer 1

Let c = cost to retailer ... what the seller bought it for

Let m = marketed price

Let p = sale price

 

90% of marketed price = 20% more than cost to retailer

0.9m = 1.2c

 

20% of cost to retailer is the profit which equals $4500

0.2c = 4500

c = 4500/0.2

c = $22,500

 

20% more than the cost to retailer = 90% of marketed value

1.2c = 0.9m

1.2(22,500) = 0.9m

m = 1.2(22500)/0.9

m = $30,000

 

The sale price is 20% more than the cost to retailer

1.2c = p

p = 1.2(22500) = $27,000

 

The retailer buys the item for $22,500

He then marks that up 20% to $27,000

This gives him a profit of $4,500

The marketed price is $30,000