As part of a marketing plan, some businesses mark up their prices before they advertise a sales event. Some companies use this practice to entice customers into the store without sacrificing their profits.

Question

As part of a marketing plan, some businesses mark up their prices before they advertise a sales event. Some companies use this practice to entice customers into the store without sacrificing their profits.

An electronics store wants to host a sales event prior to the big game.

How much profit will the store make on the sale of a flat screen TV that is marked up by 30% and then sold at a 20% discount if the original price of the TV is $1500?

Answer 1

let x equal the starting price

(1.3 x) * (1 - .2) = 1.04 x

1.04 x - x = .04

.04 * 1500 = ?