A distributor sells a product through an online store, which take a commission of 20% of the price set by the distributor. The distributor obtains the product from a producer at the price of $16 per item. What is the price that the buyer observers online if the distributor wants to maintain a 20% profit on the cost of the item?
Pick
A) $ 20
B) $ 21
C) $ 22
D) $ 23
E) $ 24

Rationale: let x be the price that buyers see online . the distributor wants to receive 1.2 ( original price ) which should be 80 % of x . 1.2 ( 16 ) = 0.8 x x = 1.2 ( 16 ) / 0.8 = 1.5 ( 16 ) = $ 24 the answer is e .
Answer: E