A store purchased two kinds of t-shirts for the same cost. The store sold one of them at a profit of 20% and another one at the cost price. If the store collected $88 altogether, what was the cost of each t-shirt?
Set the cost of each t-shirt as 100%.
The selling price of the first t-shirt: 100% + 20% = 120%
The total selling price of the two t-shirts: 120% + 100% = 220%
Then, use the formula: Whole = Part ÷ Percentage
Thus, the cost: 88 ÷ 220% = $40.00