Answer
He should charge 40 dollars for one pair of shoes.
Work Step by Step
Let s represent the selling price. The basic relationship is: selling price equals cost plus profit.
Selling price = Cost + Profit
Selling price = s
Cost = 32
Profit = 20% $\times$ s = 0.2s
We substitute these values into the equation to obtain:
s = 32 + 0.2s
0.8s = 32
Divide both sides by 0.8
s = 40
He should charge 40 dollars for one pair of shoes.
