A store manager buy shirts at a wholesale price of $12 and marks them up 60%. After two months, the shirts are sold on sale for 30% off the retail price.
1. What was the original retail price of the shirts?
2. What is the sale price of the shirts?
3. Does the store make a profit by selling shirts at the sale price?
Thanks,
Jenny
1. 12 + .6(12) = ?
2. ? - .3? = ??
3. ?? - 12 = ???
Fill in the question marks.
1.60 * 12 = 19.20 original retail price
0.70 * 19.20 = 13.44
13.44 - 12 is a profit if small
You are welcome.
1. To find the original retail price of the shirts, we need to calculate the price after the manager marks up the wholesale price by 60%.
The markup percentage is calculated by multiplying the wholesale price by (100% + markup percentage), in this case (100% + 60%).
Markup = Wholesale Price * (100% + Markup Percentage)
Markup = $12 * (100% + 60%)
Markup = $12 * 1.6
Markup = $19.20
Therefore, the original retail price of the shirts is $19.20.
2. To find the sale price of the shirts, we need to determine the price after applying a 30% discount to the original retail price.
The discount amount is calculated by multiplying the original retail price by the discount percentage, in this case, 30%.
Discount = Original Retail Price * Discount Percentage
Discount = $19.20 * 30%
Discount = $19.20 * 0.30
Discount = $5.76
The sale price is calculated by subtracting the discount amount from the original retail price:
Sale Price = Original Retail Price - Discount Amount
Sale Price = $19.20 - $5.76
Sale Price = $13.44
Therefore, the sale price of the shirts is $13.44.
3. To determine if the store makes a profit by selling the shirts at the sale price, we need to compare the sale price with the cost price.
The cost price is the wholesale price, which is $12.
Profit = Sale Price - Cost Price
Profit = $13.44 - $12
Profit = $1.44
Since the profit is positive ($1.44), the store does make a profit by selling the shirts at the sale price.
Please note that this analysis does not consider any additional costs such as shipping, labor, or overhead expenses.