A clothes shop normally sells their goods at 80% above cost price. In a sale, the shop reduces the prices by 25%. What percentage profit does the shop make on clothes sold in the sale?

1 Answer
Psykolord1989 .
Jan 3, 2018

35%

Explanation:

The store's basic price is 80% above the cost price. Define P as store price, and C as cost price...

P = C + 0.8C = 1.8C

During the sale, they are taking 25% off of their own prices (they of course cannot affect the cost price), meaning that if we define S for sales price:

S = P - 0.25P = 0.75P = 3/4P

Converting P to C as above:

S = 0.75*1.8*C = 1.35C

They are now selling for 35% above the cost, meaning that they will be making 35% profit on each item sold during the sale.

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