Cressida sells clothes in hers tore. She usually makes a profit of 40%. She decides to reduce her prices in sale.

Question

Cressida sells clothes in hers tore. She usually makes a profit of 40%. She decides to reduce her prices in sale. She still wants to make 12% profit. By what % of the normal selling price should she reduce her prices?

Answer 1

So, she was charging 140% of her cost to make a 40% profit.

 

She wants to reduce her profit by 28%.

 

Percent increase/decrease = difference/original

 

28/1.4 = 0.2 = 20%