Lumber queen sells 4*8 sheets of drywall for $ 8.00 each less 14% its competitors across town offer the same drywall for $ 12.00 less 30% 20 % what additional rate of discount must lumber king offer to meet the competitors
To determine the additional rate of discount that Lumber Queen must offer to meet its competitors, we first need to find the selling price of the drywall at the competitor's store after their discount.
Competitor's Price:
Original price of 4*8 drywall = $12.00
Discount percentage = 30%
Discount amount = $12.00 * 30% = $3.60
Selling price at competitor's store = $12.00 - $3.60 = $8.40
Now let's find the original selling price of the drywall at Lumber Queen:
Original selling price of 4*8 drywall = $8.00
Discount percentage = 14%
Discount amount = $8.00 * 14% = $1.12
Selling price at Lumber Queen = $8.00 - $1.12 = $6.88
To find the additional rate of discount Lumber Queen needs to offer to meet the competitor's price, we need to calculate the difference between the selling price at Lumber Queen and the competitor's price:
Additional discount needed = Selling price at competitor's store - Selling price at Lumber Queen
Additional discount needed = $8.40 - $6.88 = $1.52
Now, let's calculate the percent difference between the additional discount needed and the selling price at Lumber Queen:
Additional discount percentage = (Additional discount needed / Selling price at Lumber Queen) * 100
Additional discount percentage = ($1.52 / $6.88) * 100 ≈ 22.09%
Therefore, Lumber Queen must offer an additional discount of approximately 22.09% to meet its competitors.