A store sells plants for $35, which includes a 75% markup. Will the store make a profit, take a loss or break even if it has 75% off sale next week? Explain.
To determine whether the store will make a profit, take a loss, or break even when it has a 75% off sale, we need to follow a series of steps.
1. Calculate the original price of the plants without the markup:
Let's denote the original price as "x." If the store's selling price with a 75% markup is $35, we can set up the equation:
$35 = x + 0.75x
Simplifying the equation, we have:
$35 = 1.75x
2. Solve for the original price (x):
Dividing both sides of the equation by 1.75, we have:
x = $35 / 1.75
x = $20
3. Determine the store's purchase or wholesale price:
Since the selling price is $20 and the markup is 75%, we can calculate the wholesale price by subtracting the markup percentage from 100%:
100% - 75% = 25%
Therefore, the store's purchase price for each plant is 25% of the selling price:
$20 * 0.25 = $5
4. Calculate the selling price during the 75% off sale:
With a 75% discount, the selling price of each plant will be 25% of the original price:
$20 * 0.25 = $5
Now, let's analyze the results:
If the selling price during the 75% off sale is the same as the store's purchase price ($5), then the store will break even. This means that the store will neither make a profit nor take a loss.
However, if the selling price during the sale is higher than the store's purchase price ($5), then the store will make a profit.
On the other hand, if the selling price during the sale is lower than the store's purchase price ($5), then the store will incur a loss.
By comparing the selling price during the sale ($5) to the store's purchase price ($5), we see that the store will break even during the 75% off sale.
PLZ help
let p be the price the store pays for a plant
they sell the plant for ... p + .75 p ... 1.75 p
75% off means 25% of the regular selling price
... .25 * 1.75 p = .4375 p
... this is less than half of what the store initially paid for the plants
So is the answer : profit
if you sell something for less than half of what you paid for it
is it profit or loss