a store sells ladders.
. the retail price was a 40m percent markup over the manufacturer price.
.a month later, the store reduced the retail price of the ladder by 25 percent
What percent markup is the new retail price over the manufacturer price?
1.4*.75 = 1.05
so, a 5% final markup
So first there's a retail price and they put a markup of 40 percent.
Lets say X=1
40 percent also equals .4
1*.4=.4 +1=1.4
Then the store reduced the retail price of the ladder by 25%=.25
1-.25=.75
Take 1.4 and .75 and multiply them
1.4*.75=1.05
We can do 1.05-x(1)=.05
.05*100=5%
Hope this helped I just figured it out
looks like you need to read about what a markup means
A 40% markup means you add 40% to the price. So, if the price is $x, you wind up with
x + 0.4x = x(1+.4) = 1.4x
we don't need to carry around all those x's, we just need to know that the price after a 40% markup is 1.4 times what it started out.
Same for the 25% discount. 1 - .25 = .75
The easiest way to see it is to run an example:
$10 dollar cost to store.
40 percent markup would make the price $14.00.
a 25 percent discount would be $3.50 off or $10.50
Price to store is still $10.00.
The new price gives them a $0.50 markup or 5% of $10.00
I'm am very confused, because i'm just starting with theses problems, pls explain more specifically!!!
where did you get 1.4 and .75? please explain.
I am still a bit confused...
you are all adjust
Thank you all for solving this question!
100%+40%=140%
100%-25%=75%