Bunuel wrote:

Suits at a local clothing store are discounted 20 percent. Despite the discount, the store owner enjoys a net profit (discount price minus cost) equal to 60 percent of the cost of the suits. If the suits cost the clothing store owner $200 each, what was the prediscount retail price of each suit?

(A) $300

(B) $400

(C) $500

(D) $600

(E) $700

Kudos for correct solution.

There is another approach, if it is difficult to lay down the algebraic equation.

Its given profit is 60%of cost price. and cost price of suit is $200

i.e profit = 60% of 200 = 120

i.e SP = 200 + 120 =320

Now look into the option, it is always better to start with option C.

option C = 500

i.e 500 * 20% = 100 i.e SP = 500 - 100 =400, which is way too high

Option B

i.e 400 *20% = 80 i.e SP = 400 -80 =320, which is our answer

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