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?
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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?
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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.
