Question

A store marks up merchandise 40% for profit. If an item costs the store $12, what is the selling price?

Answer 1

If they are giving you a profit of 40% then subtract the 40% of $12 with $12. It means
first calculate the 40% of $12

(40/100)*12 = 4.8

it means they are giving you a discount of $4.8.

so the selling price of that item will be

12 - 4.8 = $7.2

Answer 2

hope this helps u.......