A retailer received trade discounts of 12%, 7% from a manufacturer. They then received a further $200 discount (for some reason). They applied a 42% markup to price the item in store, but ended up selling it at a 20% discount, resulting in a $50 gross profit. What was the list price?
A retailer received trade discounts of 12%, 7% from a manufacturer. They then received a further $200 discount (for some reason). They applied a 42% markup to price the item in store, but ended up selling it at a 20% discount, resulting in a $50 gross profit. What was the list price?
Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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Transcribed Image Text:A retailer received trade discounts of 12%, 7% from a manufacturer. They then
received a further $200 discount (for some reason). They applied a 42% markup
to price the item in store, but ended up selling it at a 20% discount, resulting in a
$50 gross profit. What was the list price?
Expert Solution
Step 1: Basic & given information
CP = The cost price of the item to the shopkeeper. The price at which the shopkeeper has purchased the item from manufacturer or whole seller.
MP = The marked price or the list price. The price of the item decided by shopkeeper after adding its desired margin.
MP = C + shopkeeper margin
SP = Selling price, the actual price at which customer buys.
SP = (MP - discounted amount)
P = Profit, the actual margin that shopkeeper earned after selling at Selling price over cost price.
P = SP - CP
Mark up : The % increase in the cost price to decide the market price/list price.
Given:
Mark up = 42%
discount = 20%
profit = $50.
Step by step
Solved in 4 steps
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