SOLUTION: AXY men’s sportswear is planning to sell its new line of pants to retail outlets. The cost to the retailer will be RM33 per pair of pants. As a convenience to the retailer, AXY

Question 1193463: AXY men’s sportswear is planning to sell its new line of pants to retail outlets. The cost to the
retailer will be RM33 per pair of pants. As a convenience to the retailer, AXY will attach a
price tag to each pair. What amount should be marked on the price tag so that the retailer may
reduce this price by 20% during a sale and still make a profit of 15% on the cost?

Answer by ikleyn(52795) (Show Source): You can put this solution on YOUR website!
.
AXY men’s sportswear is planning to sell its new line of pants to retail outlets. The cost to the
retailer will be RM33 per pair of pants. As a convenience to the retailer, AXY will attach a
price tag to each pair. What amount should be marked on the price tag so that the retailer may
reduce this price by 20% during a sale and still make a profit of 15% on the cost?
~~~~~~~~~~~~~~~~~~~

Let x be that amount marked on the price tag (the unknown value under the problem's question).


I am going to construct an equation for x.



Its left side will be the reduced price after the 20% discount. So, left side of the equation is 

(1-0.2)x = 0.8x.



Right side of the equation will express the fact that the rdeuced price still provides 15% profit
comparing with the cost, which is RM33.

So, right side of the equation shoud be 33*(1+0.15).



After these explanations, the equation is

    0.8x = 33*(1+0.15).



Simplify and find x

    0.8x = 33*1.15

       x =  = 47.44    (rounded to two decimals).


ANSWER.  The price at the tag should be RM 47.44.


CHECK.  The reduced price after 20% discount is  0.8*47.44 = 37.95.

        Its ratio to the cost is   = 1.15,  which means 15% profit.

        CONCLUSION: the answer is correct.

Solved.

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