After a store marks up the wholesale price of an item by 75%, the retail price of the item is $350. A month later, the store puts the item on sale for 20% off the retail price. Two weeks later, the store offers 30% off the sale price. What is the final price of the item? Is the store making a profit on the item?

Question

Zane Hopkins

Mathematics

14 December, 18:46

After a store marks up the wholesale price of an item by 75%, the retail price of the item is $350. A month later, the store puts the item on sale for 20% off the retail price. Two weeks later, the store offers 30% off the sale price. What is the final price of the item? Is the store making a profit on the item?

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Answers (2)

Know the Answer?

Paula Peterson · Answer 1

Given the markup of 75%, the selling price of the item became:

Cost * (1+Markup) = selling price

the initial price of the house will therefore be:

C * (1+0.75) = 350

1.75C=350

C=350/1.75

C=$200

therefore the initial selling price was $200. Given that after the markup price was later reduced by 20%, the new price became:

80/100*350

=$280

If the price was later reduced by 30% the new price was:

70/100*280

=$196

From this final price we see that if the original price was $200 and the selling price is now $196, then the item is actually selling at lose.

Scarlet · Answer 2

Let the wholesale price of the item = $x

Retail price = $350

x + (75/100) * x=350

x + (3/4) x=350

(4x+3x) / 4=350

(7/4) x=350

x=350 * (4/7)

x=50*4=$200

20% off on retail price = 350 - (20/100) * 350

=350-70

Sale price = $280

30% off on sale price = 280 - (30/100) * 280

=280-84

Final price = $196 and wholesale price = $200

Since the final price is less than the wholesale price, the store is not making a profit. It is a loss.