Problem: 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 ?
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 .
annotated_formula: divide(add(multiply(divide(20, const_100), 16), 16), divide(subtract(const_100, 20), const_100))