Mr. Jones desires to sell an article costing $28 at a gross profit of 30% of the selling price, and to allow a trade discount of 20% of the list price.

The list price of the article should be?

Mr. Jones intends to make the cost 100% - 30% = 70% of the selling price, so the selling price should be 28/0.7 = $40.

On the other hand, the selling price should be 100% - 20% = 80% of the list price. Hence, the list price should be $40/0.8 = $50.

Secure Information

Content will be erased after question is completed.

Enter the email address associated with your account, and we will email you a link to reset your password.

Forgot your password?

Sign Up