how much should a food manufacturer sell pound of canned meat if
his cost is 30 pesos per can and he wants to make a 20% profit on
the selling price for after giving away an 8% discount?
Let the selling price be s.
He wants to reduce the selling price by 8% leaving only 92% of s,
or 0.92s,
which is what he will receive.
He wants this 0.92s to be his cost of 30 pesos plus 20% of his cost
of 30 pesos.
That's 30 + (0.20)(30) = 30+6 = 36 pesos.
So he wants 0.92s to equal 36 pesos.
0.92s = 36
s = 36/0.92 = 39.13043478... pesos
Round that to the nearest centavo, 39.13 pesos. <-- answer
We check.
He begins with 39.13 pesos.
He reduce it by 8%, and 0.08(39.14) = 3.1384 pesos, rounded
to 3.14 pesos
So he sells it for 39.3-3.14 = 36.16 pesos
Since he paid 30 pesos, his profit is 6.16 person
Now we find out what percent of 30 pesos his profit of 6.16 pesos is.
So we calculate 6.16/30 = .20533333... which rounds to 21%.
The difference is due to the fact that we must round off.
Edwin
