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Joined: 20 Feb 2017
Posts: 2506
Given Kudos: 1053
GPA: 3.39
A distributor sells a product through an on-line store, which take a c
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28 Jul 2021, 02:57
28 Jul 2021, 02:57
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A distributor sells a product through an on-line store, which take a commission of 20% of the price set by the distributor. The distributor obtains the product from a producer at the price of $15 per item. What is the price that the buyer observers on-line if the distributor wants to maintain a 20% profit on the cost of the item?
A. 18
B. 21.6
C. 22
D. 22.5
E. 27
A. 18
B. 21.6
C. 22
D. 22.5
E. 27
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A distributor sells a product through an on-line store, which take a c
[#permalink]
28 Jul 2021, 22:59
28 Jul 2021, 22:59
GeminiHeat wrote:
A distributor sells a product through an on-line store, which take a commission of 20% of the price set by the distributor. The distributor obtains the product from a producer at the price of $15 per item. What is the price that the buyer observers on-line if the distributor wants to maintain a 20% profit on the cost of the item?
A. 18
B. 21.6
C. 22
D. 22.5
E. 27
A. 18
B. 21.6
C. 22
D. 22.5
E. 27
Cost price = $15
For 20% profit, the distributor must keep the price = 1.20(15) = $18
Since, he needs to give 20% commission, 80% of the Buyer Price should be $18
i.e. 0.8B = 18
B = $22.5
Hence, option D
gmatclubot
A distributor sells a product through an on-line store, which take a c [#permalink]
28 Jul 2021, 22:59
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