Question: A store owner buys clothes wholesale and adds 80% to the wholesale price to set the retail price. The retail price of a pair of pants is $36. What is the wholesale price? Think carefully first, then make a decision:
Let X be the wholesale price. The retail price of a pair of pants is X + X * 80% = $36. Thus 1.8 * X = $36. Thus X = $36 / 1.8 = $20. So the answer is 20.