Question 1181721: A certain retailer increases wholesale prices by 36%. If this retailer offers a 25% discount off the ticket price, what percent profit will the retail realize? The realized profit is the amount of money remaining after paying off the wholesale prices. In this case, it should be expressed as a percent of the wholesale price. The following questions are to help you better understand the final solution. Let's assume the wholesale price for our item is $900. 3. How much do you have to pay for the item? 4. How much profit does the retailer make (in $)? 5. What is the percent profit? (Note: enter as percent,not as a decimal value.)
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! the retailer increases the wholesale price by 36%.
this makes the ticket price 36% more than the wholesale price.
if the retailer than offers the item with a 25% discount, then the sale price is equal to 75% of the ticket price.
let W = the wholesale price.
let T = the ticket price
let S = the sale price.
you are given that T = W + .36 * W = 1.36 * W
you are also given that S = T - .25 * T = .75 * T
you have T = 1.36 * W and S = .75 * T
in the formula of S = .75 * T, replace T with its equivalent value of 1.36 * W to get:
S = .75 * 1.36 * W)
simplify this to get:
S = 1.02 * W
let P = the profit.
off the ticket price, P = T - W = 1.36 * W - W = .36 * W = 36%
off the sale price, P = S - W = 1.02 * W - W = .02 * W = 2%.
if you assume that W = 900, then these formulas become:
T = 1.36 * W = 1.36 * 900 = 1224
S = .75 * T = .75 * 1224 = 918.
if you pay the sale price, then you pay 918 for the item that cost the retailer 900.
the retailer makes a profit of 918 minus 900 = 18 on the item.
that profit is equal to 18/900 = .02 which is 2% of the wholesale price.
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