Question

Explain this question fully and tell me what going on please!
A boutique store owner purchases floor rugs for $45 each and marks them for sale so that he can sell then at a discount of 70% on his marked price and still make a profit of 80% on the selling price.
(a) Calculate the marked price on these rugs.
(b) Calculate the selling price of these rugs.
(c) What profit is made on each of the rugs?

Answer 1

what's*

Answer 2

You start with the purchased price : $45. He wants 80% profit, ie, 45x80/100 = $36 as profit. So he wants to sell it at $45 + $36 = $81, which will become his 'sale price'.
Now he wants to pretend he's giving a 70% discount when selling at $81. Which is another way of saying he wants to sell at 30% of his pretend price.
So if his pretend price (called Marked Price or List Price) is P, then we have
P x 30/100 = 81.
Or, P = 81/ 0.3 = $270.

Answer 3

I don't get the second paragraph @knowall

Answer 4

Well, the problem states that he wants to 'offer' a discount of 70%.

If he does not want to suffer a loss, this means he has to state a higher price (Marked Price), and then attract customers with a claim of "70% discount".

Obviously that marked price has to be very high if he wants to sell at $81. The 2nd para describes how you get to that Marked price that he can list, and then offer 70% discount and still get a 80% profit.