A wholesaler sells goods to a retailer at a profit of 20%. The retailer sells to the customer.who pays 80% more than the cost of the wholesaler. What is the retailer's profit?

A wholesaler sells goods to a retailer at a profit of 20%. The retailer sells to the customer.who pays 80% more than the cost of the wholesaler. What is the retailer's profit? Correct Answer 50%

Let the cost of the wholeselle be W. Then, Buying price of the retailer = 1.2W The customer pays = W + 0.8W = 1.8W So, profit of the retailer = (1.8 - 1.2)/1.2 x 100% =  50%
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