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.
(a) 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?
$
(b) 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?
$
(c) 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.
(a) Henry would pay $908.70 at the superstore ((1.30)($699)).
(b) Henry would pay $977.40 at the department store ((1.40)($699) - (0.10)($699)).
(c) Henry would pay more for the electric stove at the department store.
(a) If the wholesale price of the electric stove is $699 and the superstore marks it up by 30%, Henry would pay:
Markup Amount = $699 * 30% = $209.70
Price at Superstore = Wholesale Price + Markup Amount
Price at Superstore = $699 + $209.70
Price at Superstore = $908.70
Henry would pay $908.70 for the electric stove at the superstore.
(b) If the wholesale price of the electric stove is $699 and the department store marks it up by 40% but offers a 10% discount, Henry would pay:
Markup Amount = $699 * 40% = $279.60
Price without Discount = Wholesale Price + Markup Amount
Price without Discount = $699 + $279.60
Price without Discount = $978.60
Discount Amount = $978.60 * 10% = $97.86
Price at Department Store = Price without Discount - Discount Amount
Price at Department Store = $978.60 - $97.86
Price at Department Store = $880.74
Henry would pay $880.74 for the electric stove at the department store.
(c) The true statement is:
Henry would pay less for the electric stove at the department store.