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? Choose one:  A) $20  B) $21  C) $22  D) $23  E) $24
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) = 0.8x   x = 1.2(16) / 0.8 = 1.5(16) = $24   The answer is $24.
<result>E</result>
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?