Question 1025422
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%.