Answer:
$10.
Step-by-step explanation:
Let x represent the original cost of bag of cat food.
We have been given that a pet store owner set the price of a bag of cat food at 50% above the cost. So the cost of cat food would be x plus 50% of x.
[tex]x+\frac{50}{100}*x\rightarrow x+0.5x=1.5x[/tex]
We are further told that the price was reduced by 20%, when it did not sell. So price of cat food after reduction would be [tex]1.5x[/tex] minus 20 percent of [tex]1.5x[/tex].
[tex]1.5x-(\frac{20}{100}\times 1.5x)[/tex]
[tex]1.5x-(0.20\times 1.5x)[/tex]
[tex]1.5x-(0.3x)[/tex]
[tex]1.2x[/tex]
Since price after reduction was $12, so we will equate [tex]1.2x[/tex] with 12 as:
[tex]1.2x=12[/tex]
[tex]\frac{1.2x}{1.2}=\frac{12}{1.2}[/tex]
[tex]x=10[/tex]
Therefore, the original cost of cat food was $10.
