A wholesaler sells a product to a retailer at a price that includes a 20% profit

Practice Questions

A wholesaler sells a product to a retailer at a price that includes a 20% profit margin. If the retailer sells it at a 10% loss, what is the retailer's selling price if the cost price for the wholesaler is $200?

$180
$200
$220
$240

Questions & Step-by-Step Solutions

Step 1: Identify the cost price for the wholesaler, which is given as $200.
Step 2: Calculate the profit margin for the wholesaler, which is 20% of the cost price. This is done by multiplying $200 by 0.20.
Step 3: Calculate the profit amount: $200 * 0.20 = $40.
Step 4: Add the profit amount to the cost price to find the wholesaler's selling price: $200 + $40 = $240.
Step 5: Identify the retailer's selling price, which is at a 10% loss from the wholesaler's selling price of $240.
Step 6: Calculate the loss amount for the retailer, which is 10% of $240. This is done by multiplying $240 by 0.10.
Step 7: Calculate the loss amount: $240 * 0.10 = $24.
Step 8: Subtract the loss amount from the wholesaler's selling price to find the retailer's selling price: $240 - $24 = $216.

Profit Margin Calculation – Understanding how to calculate selling price based on cost price and profit margin.
Loss Calculation – Understanding how to calculate selling price based on a loss percentage.
Percentage Calculations – Applying percentage calculations to determine profit and loss.

A wholesaler sells a product to a retailer at a price that includes a 20% profit

Practice Questions

Questions & Step-by-Step Solutions

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