A wholesaler wants to establish a list price for an item so that his selling price gives a trade discount of 10% for the list price. If he makes a mark up of 20% of this selling price and if his cost is $160 what list price should be established.
Selling price = list price - list price * 10%
Cost = 160
Also selling price = 160 + 160 * 20%
SP = 192
So we can solve the first eq:
Sp = Lp - Lp * 10/100
Sp = Lp ( 1 - 1/10)
192 = Lp ( 9/10)
Lp = 1920/9 = 213.333
Selling price = list price - list price * 10%
Cost = 160
Also selling price = 160 + 160 * 20%
SP = 192
So we can solve the first eq:
Sp = Lp - Lp * 10/100
Sp = Lp ( 1 - 1/10)
192 = Lp ( 9/10)
Lp = 1920/9 = 213.333
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