Please Help!!! I am clueless about how to work this problem out!

Question

A certain retailer increases wholesale prices by 36%. If this retailer offers a 5% discount off the ticket price, what percent profit will the retailer realize?

The realized profit is the amount of money remaining after paying off the wholesale prices. In this case, it should be expressed as a percent of the wholesale price.

The following questions are to help you better understand the final solution. Let's assume the wholesale price for our item is $500.

(1) What is the ticket price (the price including the mark-up)?

$ 

(2) How much will you save (what is the discount removed from the ticket price)?

$ 

(3) How much do you have to pay for the item?

$ 

(4) How much profit does the retailer make (in $)?

$ 

(5) What is the percent profit?

 %

Answer 1

1.) Ok, our retailer is buying something for $500 and reselling it at a 36% markup. To find the percentage markup an easy way to do is to multiply the $500 by 36% or 500 times .36. 36% of $500 is $180. Ok - our retailer buys the product for $500, marks it up or increases the price by 36% or $180 dollars and sells it for $500+$180 or $680 dollars.

2.) It's not selling well so our retailer puts a 5% discount on it. lets figure out 5% of $680 so we know how much to mark it down. $680 times 5% = 680 times .05 or $34.

3.) What you pay is now the ticker price minus the discount or $680 - $34.

4.) We know the retailer is paying $500 for the item and is selling them at $646 (680-34). We take what we sell it at minus our cost to get our profit or $646-$500.

5.) Almost there. Our retailer after discount is now pulling in $146 per sale. To get a percentage of anything we take the portion we're looking at (in this case $146) and divide it by the whole ($500) since we want to know what percentage $146 is of $500. 146/500 = .292 or 29.2%

Answer 2