1. Not finding help here? Sign up for a free 30min tutor trial with Chegg Tutors
    Dismiss Notice
Dismiss Notice
Join Physics Forums Today!
The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

Percentage Question

  1. Aug 10, 2016 #1
    1. The problem statement, all variables and given/known data
    At bernie's Bargain basement everything is sold for 20% less than the price marked. If bernie buys radios for $80, what price should he mark them if he wants to make a 20% profit on his cost?

    2. Relevant equations
    To increase a number by K% multiply it by (1+k%)

    3. The attempt at a solution
    For profit he has to increase the price by 20%.
    Two ways: 20/100 * (80) =16 and then 80 + 16 = 96
    OR 80(1+20/100) = 80 * 1.2 = 96

    Now this is the profit price but he is giving a discount of 20% also by retaining the 20 % profit. This means we have to increase the profit price by 20%
    96(1.2) =115.2 but this is not correct. Somebody please guide me.

    Zulfi.
     
  2. jcsd
  3. Aug 10, 2016 #2

    Bystander

    User Avatar
    Science Advisor
    Homework Helper
    Gold Member
    2016 Award

    What are the two basis prices? Ninety-six and something times ninety-six.
    Are you certain?
     
  4. Aug 10, 2016 #3

    SammyS

    User Avatar
    Staff Emeritus
    Science Advisor
    Homework Helper
    Gold Member

    I agree that $115.20 is not the correct answer.

    How can you tell that this is not the correct answer ?
     
  5. Aug 10, 2016 #4
    Hi,
    I have found the profit price which is 96. Now I have to find the marked price. Then I would deduct 20% from it. Am I right?

    Zulfi.
     
  6. Aug 10, 2016 #5

    SammyS

    User Avatar
    Staff Emeritus
    Science Advisor
    Homework Helper
    Gold Member

    W
    What I asked was regarding how to check your answer.

    Take $115.20 as the marked price.

    Then Bernie knocks 20% off of that, meaning he only charges 80% of that which is $92.16 .

    Therefore, Bernie's profit would be $12.16, but that is only 15.2% of $80 , so $115.20 is incorrect.


    I suggest:
    Let x represent the marked price. Then go through the above process using x rather than $115.20. Equate the result to 0.20, i.e. 20%. Turn that into an equation. Solve for x.
     
  7. Aug 10, 2016 #6
    I agree with SammyS. If x is the marked price, what is the price that the item is sold at (in terms of x)?
     
  8. Aug 10, 2016 #7
    Hi,
    it would be x(1-20/100) = x(0.8). This is because we have to deduct a discount of 20% from the marked price which we supposed to be x.
    <
    Equate the result to 0.20, i.e. 20%. >

    Sorry.
    What the book did is that they equated it to : 96 which I cant understand. That is they did:
    96 = x (.8)
    So please guide me why 20 % discount from marked price is equal to profit price??
    Zulfi.
     
  9. Aug 10, 2016 #8

    SammyS

    User Avatar
    Staff Emeritus
    Science Advisor
    Homework Helper
    Gold Member

    You got the $96 previously. Right?

    Bernie wants his profit to equal 20% of his cost. That's 20% of $80 which is $16, so he must charge $96.
     
  10. Aug 10, 2016 #9
    The list price is $120. The discount price is $96. This gives the owner a 20% profit over the cost of $80.

    If you want to offer your customer a 20% discount on the list price and also want to make 20% above your cost, your list price must be 50% above your cost (not matter what your cost is).
     
    Last edited: Aug 10, 2016
  11. Aug 10, 2016 #10
    Okay.
    96 = x(.8)
    LHS is equal to RHS

    96 is the disount price.
    x represents the 'marked price.
    0.8 represents discount of 20%. i.e the term (1- 20/100). Because of the discount we are subtracting.

    Thanks.

    Zulfi.
     
Know someone interested in this topic? Share this thread via Reddit, Google+, Twitter, or Facebook

Have something to add?
Draft saved Draft deleted



Similar Discussions: Percentage Question
  1. Percentage question (Replies: 7)

  2. Percentage problem (Replies: 17)

Loading...