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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