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 $17 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) $22.50 B) $23.50 C) $24.50 D) $25.50 E) $26.50
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(17) = 0.8x   x = 1.2(17) / 0.8 = 1.5(17) = $25.50   The answer is $25.50.
<result>D</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 $17 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?