In October, a hardware store purchased snow shovels for $8 each. The original markup was 50% based on the selling price. In December the store had a sale and marked down the shovels by 20%. By January 1, the sale was over and the shovels were marked up to 15%. In March, the store held a clearance sale of all winter tools by having a final markdown of 60%. What was the final selling price of the shovels?
To calculate the final selling price of the shovels, we need to follow a series of calculations based on the given information.
1. October purchase price: $8 each
This information tells us the cost of each snow shovel when the store initially purchased them.
2. Original markup: 50% based on the selling price
This means the store added a 50% markup on top of the cost price.
Calculating the original selling price:
Markup = 50% of the original selling price
Original selling price = October purchase price + Markup
Original selling price = $8 + (50% of original selling price)
To solve for the original selling price, we can set up an equation:
Original selling price = $8 + 0.5 * Original selling price
0.5 * Original selling price = $8
Original selling price = $8 / 0.5
Original selling price = $16
3. December markdown: 20%
This means the store reduced the selling price by 20%.
Calculating the selling price after the December markdown:
Selling price after December markdown = Original selling price - (20% of original selling price)
Selling price after December markdown = $16 - (20% of $16)
Selling price after December markdown = $16 - (0.2 * $16)
Selling price after December markdown = $16 - $3.2
Selling price after December markdown = $12.80
4. January markup: 15%
This means the store increased the selling price by 15%.
Calculating the selling price after the January markup:
Selling price after January markup = Selling price after December markdown + (15% of Selling price after December markdown)
Selling price after January markup = $12.80 + (15% of $12.80)
Selling price after January markup = $12.80 + (0.15 * $12.80)
Selling price after January markup = $12.80 + $1.92
Selling price after January markup = $14.72
5. March clearance sale markdown: 60%
This means the store further reduced the selling price by 60%.
Calculating the final selling price:
Final selling price = Selling price after January markup - (60% of Selling price after January markup)
Final selling price = $14.72 - (60% of $14.72)
Final selling price = $14.72 - (0.6 * $14.72)
Final selling price = $14.72 - $8.83
Final selling price = $5.89
Therefore, the final selling price of the shovels after all the discounts and markups is $5.89.