A technology reseller purchasing agent procured 20 mid-brand DVD players for the listed wholesale price of $80 each, but receives a 25% discount because he is an established customer and friend of the wholesale dealer. His store then sells these DVD players at a 20% markup above the original wholesale price. What is the store's profit margin on each DVD player?

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The first step in solving this problem is to find the discount received from the wholesale dealer for cadi DVD player by multiplying the listed price by the discount percentage: $80 x 0.25 = $20 Next, find the actual price per DVD player paid to the wholesale dealer: $80-$20=560 Now find the retail margin by multiplying the markup percentage by the original wholesale price: $80x0.20 = $16 Next, find the retail price for which the technology store sells the DVD players to its customers by adding the markup amount to the listed wholesale amount: $80+ $16 = $96 To find the profit margin, subtract the retail price from the actual price paid to the wholesale dealer. $96 $60 = $36 profit per DVD player

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