Ans: A
Let $\$x$ be the cost of the bag.
Let $\$x$ be the cost of the bag.
$\begin{array}{rcl}
x(1+50\%) & = & 900 \\
x & = & 600
\end{array}$
Then, the required profit
$\begin{array}{cl}
= & 900(1-20\%) – 600 \\
= & \$120
\end{array}$
