Choose the one alternative that best completes the statement or answers the question.
-Suppose that a merchant buys a patio set from the wholesaler for $260. At what price should the merchant mark the patio set so that it may be offered at a discount of 25% but still give the merchant
A 20% profit on his $260 investment?
A) $325
B) $416
C) $377
D) $312

Question

Quizplus · Accepted Answer

To achieve a 20% profit on a $260 investment, the merchant needs to sell the patio set for $260 * 1.20 = $312. To offer it at a 25% discount and still maintain this selling price, the marked price must be higher. Let x be the marked price. Then, x - 0.25x = $312, solving for x gives x = $416.

Choose the One Alternative That Best Completes the Statement or Answers