Question 1025422: The store's markup on a wholesale item is 40%. The store is currently having a sale, and the item sells for 25% off the retail price. What is the percent of profit made by the store?
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! the store buys it wholesale at 40% off the retail price.
the store then sells it at a discount of 25% off the retail price.
let x = the retail price.
the store buys it at 40% off the retail price.
the store pays x - .4 * x = .6 * x
the store then sells it at 25% off the retail price.
the store sells it at x - .25 * x = .75 * x.
the cost to the store is .6 * x.
the store sells it at .75 * x.
the profit to the store is the selling price minus the cost.
that becomes .75 * x - .6 * x which is equal to .15 * x.
the percent profit that the store makes is the profit that the store makes divided by the cost to the store * 100.
that becomes .15 * x / .60 * x = .15 / .60 = .25 * 100 = 25%.
if we put this in numbers, you might be able to see better.
assume the retail price is 100 dollars.
the wholesale price is 60 dollars, which is 40% off the retail price of 100 dollars.
the store sells it at 25% off the retail price.
the store therefore sells it at 75 dollars, which is 25% off the retail price of 100 dollars.
the cost to the store is 60 dollars and the store sells it for 75 dollars.
the store makes a 15 dollar profit.
percent profit is equal to (profit divided by cost) times 100.
this becomes (15 / 60) * 100 = 25%.
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