A particular style of sunglasses costs the retailer $85 per pair. At what price should the retailer mark them so he can sell them at a 15% discount off the original price and still make 20% profit on his cost?

Respuesta :

Solution:

Given that a particular style of sunglasses costs the retailer $85 per pair.

This implies that

[tex]cost\text{ price = \$85}[/tex]

To make a profit of 20% on his cost, he has to sell at the price of

[tex]\begin{gathered} \$85\text{ +\lparen}\frac{20}{100}\times85) \\ =\$102 \end{gathered}[/tex]

To determine the mark price for which he can sell them at a 15% discount off the original price,

let

[tex]y\Rightarrow mark\text{ price}[/tex]

Thus,

[tex]\begin{gathered} y-(\frac{15}{100}\times y)=102 \\ \Rightarrow y-0.15y=102 \\ 0.85y=102 \\ divide\text{ both sides by the coefficient of y, which is 0.85} \\ \frac{0.85y}{0.85}=\frac{102}{0.85} \\ \implies y=\$120 \end{gathered}[/tex]

Therefore. the retailer should mark the price at $120.