Multiple choice

A wholesaler allows a discount of 20% on the list price to a retailer. The retailer sells at 8% discount on the list price. The profit percent earned by the retailer is

  1. 20%

  2. 15%

  3. 12%

  4. 8%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let the list price be 100. The wholesaler sells to the retailer at 20% discount, so the retailer's cost price is 80. The retailer sells at 8% discount on list price, so the selling price is 92. Profit = 92 - 80 = 12. Profit percent = (12 / 80) * 100 = 15%.

AI explanation

Let the list price be 100, making the cost price for the retailer 80 after the 20 percent wholesale discount. The retailer sells the item for 92 after applying an 8 percent discount on the list price. The profit percentage formula is (((selling price minus cost price) divided by cost price) multiplied by 100), which gives (((92 minus 80) divided by 80) multiplied by 100). This equals (12 divided by 80) multiplied by 100, resulting in a profit of 15 percent.

Keep practicing — related questions