Kevin is looking for the best deal on a television that has a wholesale price of
$569
. Help him compare the price of the television at two different stores by completing the following.
(a) Kevin looks at the television in a department store that marks up the television's wholesale price
70%
. But because of a customer loyalty program, he would receive a
10%
discount off the in-store price. Ignoring tax, how much would he pay for the television at this store?
$
(b) Kevin then goes to a superstore that marks up the television's wholesale price
60%
. But he is not a member of the superstore's customer loyalty program. He must pay the full in-store price. Ignoring tax, how much would he pay for the television at this store?
$
(c) Select the true statement.
Kevin would pay more for the television at the department store.
Kevin would pay more for the television at the superstore.
Kevin would pay the same amount for the television at the department store and at the superstore.
(a) The department store marks up the wholesale price by 70%, which means they are selling the television for $569 + 70% of $569 = $569 + $398.30 = $967.30. However, Kevin gets a 10% discount, which means he would pay 90% of the in-store price: 0.9 x $967.30 = $870.57. Therefore, Kevin would pay $870.57 for the television at the department store.
(b) The superstore marks up the wholesale price by 60%, which means they are selling the television for $569 + 60% of $569 = $569 + $341.40 = $910.40. Since Kevin is not a member of the superstore's customer loyalty program, he would have to pay the full in-store price of $910.40. Therefore, Kevin would pay $910.40 for the television at the superstore.
(c) Kevin would pay more for the television at the department store.
(a) To calculate the price Kevin would pay at the department store, we need to add the markup to the wholesale price and then subtract the discount.
Markup: $569 * 70% = $398.30
In-store price: $569 + $398.30 = $967.30
Discount: $967.30 * 10% = $96.73
Final price: $967.30 - $96.73 = $870.57
So, Kevin would pay $870.57 for the television at the department store.
(b) To calculate the price Kevin would pay at the superstore, we need to add the markup to the wholesale price.
Markup: $569 * 60% = $341.40
In-store price: $569 + $341.40 = $910.40
So, Kevin would pay $910.40 for the television at the superstore.
(c) The true statement is: Kevin would pay more for the television at the department store.