SOLUTION: A merchant is selling a new line of watches. He prices the watches at $120 and runs a 10% off sale. During the sale, he made a profit of 20% on the watches. How much did the mer

Algebra ->  Percentages: Solvers, Trainers, Word Problems and pie charts -> SOLUTION: A merchant is selling a new line of watches. He prices the watches at $120 and runs a 10% off sale. During the sale, he made a profit of 20% on the watches. How much did the mer      Log On


   

Question 1197921: A merchant is selling a new line of watches. He prices the watches at $120 and runs a 10% off sale. During the sale, he made a profit of 20% on the watches. How much did the merchant pay for each watch?
Found 2 solutions by josgarithmetic, ikleyn:
Answer by josgarithmetic(39630) About Me  (Show Source):
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p, original price merchant pay per watch

These as for just 1 watch:
revenue, 120-%280.1%29%2A120
profit, 120-%280.1%29%2A120-p
Profit was 20% on the cost for the watches.

highlight_green%280.2p=120-12-p%29
Simplify and solve for p.

$90

Answer by ikleyn(52898) About Me  (Show Source):
You can put this solution on YOUR website!
.

The selling price, after the 10% discount, is  120 - 0.1*120 = 108 dollars.


It still provides the profit of 20%.


Hence, for the buying price P we have this equation

    1.2P = 108,


which gives

    P = 108/1.2 = 90 dollars.


ANSWER.  The price which the merchant pays for each watch is $90.

Solved.