



 
Gaurav, You need to ask yourself "20% of what?" If you purchase an item for $100 and you want your profit to be 20% of what you paid for it then you would charge your customer $100 * 1.2 = $120. If you purchase an item for $100 and you want your profit to be 20% of what your customer pays for it then you would charge your customer $100/0.8 = $125. Penny  


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