The store wants to make a 20% profit:
Multiply the cost of the toy by 1.20 ( cost plus 20%).
6.25 x 1.20 = $7.50
This means when the toy is sold at 25% off, it needs to be $7.50 to make the 20% profit.
When the item is 25% off, that means it would sell for 75% of the original price.
Now to find what the price needs to be before the 25% off divide the profit price by 75%
7.50 / 0.75 = $10
K = $10
