When a certain commodity is sold, the price is 1200 yuan. Later, due to the overstocking of commodities, the store is ready to sell it by 7% of the price, but it can still keep a profit margin of 5%. Then the purchase price of the commodity is 1200 yuan

When a certain commodity is sold, the price is 1200 yuan. Later, due to the overstocking of commodities, the store is ready to sell it by 7% of the price, but it can still keep a profit margin of 5%. Then the purchase price of the commodity is 1200 yuan

Suppose the purchase price of the commodity is x yuan, then the selling price is 0.7 × 1200 yuan at a discount of 7% of the list price, and the selling price that can keep the 5% profit margin is (1 + 5%) x yuan
(1 + 5 ℅) x = 0.7 × 1200 to solve the equation
1.05x=840
x=800
A: the purchase price is 800 yuan