Henry is looking for the best deal on an electric stove that has a wholesale price of
$699
. Help him compare the price of the electric stove at two different stores by completing the following.
Henry goes to a superstore that marks up the electric stove's wholesale price
30%
. Ignoring tax, how much would he pay for the electric stove at this store?
$
Henry then looks at the electric stove in a department store that marks up the electric stove's wholesale price
40%
. But because of a customer loyalty program, he would receive a
10%
discount off the in-store price. Ignoring tax, how much would he pay for the electric stove at this store?
$
Select the true statement.
Henry would pay more for the electric stove at the superstore.
Henry would pay more for the electric stove at the department store.
Henry would pay the same amount for the electric stove at the department store and at the superstore.
Henry would pay more for the electric stove at the department store.
To find out how much Henry would pay for the electric stove at the superstore, we need to calculate 30% of the wholesale price and add it to the wholesale price.
The markup at the superstore is 30%, so we calculate 30% of $699 using the formula: (30/100) * $699 = $209.70.
Adding this markup to the wholesale price, Henry would pay $699 + $209.70 = $908.70 for the electric stove at the superstore.
To find out how much Henry would pay for the electric stove at the department store, we need to calculate 40% of the wholesale price and subtract 10% of that amount from it.
The markup at the department store is 40%, so we calculate 40% of $699 using the formula: (40/100) * $699 = $279.60.
Next, we find out the discount Henry would get, which is 10% of $279.60 using the formula: (10/100) * $279.60 = $27.96.
Finally, we subtract the discount from the marked-up price to get the final price: $279.60 - $27.96 = $251.64.
Therefore, at the department store with the loyalty program, Henry would pay $251.64 for the electric stove.
Comparing the prices, we can see that the price at the department store with the loyalty program is lower ($251.64) compared to the price at the superstore ($908.70).
Therefore, the true statement is:
Henry would pay more for the electric stove at the superstore.