C. B. Clothing ordered sweaters at a wholesale cost of $20 each. The store marked up the price 50 percent above the wholesale cost to use as their selling price. After every month that the sweater didn't sell, the store reduced the selling price by 20 percent. After how many monthly price reductions did the price dip below the wholesale cost? after 1 monthly price reduction after 2 monthly price reductions after 3 monthly price reductions after 4 monthly price reductions

Option B. after 2 monthly price reductions.

Step-by-step explanation:

C. B. Clothing ordered sweaters at a wholesale cost = $20 each.

The store marked up price 50% above the wholesale cost to use as their selling price.

So the selling price = $20 + (50% * 20)

= 20 + (0.50 * 20) = $30.00

Every month store reduced the selling price by 20%

In the first month, after reducing the selling price by 20% = 30 - (20% * 30)

= 30 - (0.20 * 30)

= 30 - 6 = $24.00

In the second month, the price would be = 24 - (20% * 24)

= 24 (0.20 * 24)

= 24 - 4.80 = $19.20

19.20 is below the wholesale cost.

Therefore, after 2 monthly price reduction the price dip below the wholesale cost.

After 3 monthly reductions because 50% of 20 is 10 so each sweater is $30 price goes down 20% month one 40% month 2 and 60% month 3 and 60% of 30 is $18