The cost of a product to retailer is $3.40 if the retailer wishes to make a profit of 20% on the selling price, what price should the product be sold?

To determine the selling price of the product, we need to account for the retailer's desired profit margin of 20% on the selling price.

Let the selling price be denoted as $ P $. The retailer wants to make a profit of 20% on this selling price, so the profit is $ 0.20 \times P $.

We also know that the cost of the product to the retailer is $3.40. The selling price minus the profit must equal the cost of the product:

\[
P - 0.20P = 3.40
\]

Simplifying the equation:

\[
0.80P = 3.40
\]

Now, solve for $ P $ by dividing both sides by 0.80:

\[
P = \frac{3.40}{0.80} = 4.25
\]

Thus, the product should be sold for **$4.25**.

Would you like more details on this calculation or have any questions?

Here are some related questions to explore:
1. What if the profit margin was 30% instead of 20%?
2. How would the selling price change if the cost to the retailer was different?
3. How can we express the profit as a percentage of the cost price instead of the selling price?
4. How do taxes influence the final selling price in retail?
5. What is the formula for markup based on the cost price?

**Tip:** Always verify whether the percentage profit is based on the selling price or cost price, as the two yield different results.

The cost of a product to retailer is $3.40. If the retailer wishes to make a profit of 20% on the selling price, what price should the product be sold?

Learn how to calculate the selling price of a product when a retailer wants to make a 20% profit margin based on the selling price. The problem involves concepts like algebra, percentages, and profit/loss. Suitable for Grades 6-8 students.

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