Question

A wholesaler sells 20 pens for the marked price of 16 pens to a retailer. The retailer in turn sells them at marked price. The retailer
a) makes a profit of 25%.
b) suffers a loss of 25%.
c) makes a profit of 15%.
d) none of the above.

Answer 1

a) (20-16)/16 = 1/4 = 25%

Answer 2

Thanks, but could you explain a little more elaborately?

Answer 3

say it's a dollar per pen,
he makes $20, and paid $16, so the profit is 20-16=$4
as a percentage of his original cost, 4/16*100=25%

Answer 4

ok, thanks