Henry is looking for the best deal on an electric stove that has a wholesale price of
$699
. Help him compare the price of the electric stove at two different stores by completing the following.
Henry goes to a superstore that marks up the electric stove's wholesale price
30%
. Ignoring tax, how much would he pay for the electric stove at this store?
$
Henry then looks at the electric stove in a department store that marks up the electric stove's wholesale price
40%
. 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 electric stove at this store?
$
Select the true statement.
Henry would pay more for the electric stove at the superstore.
Henry would pay more for the electric stove at the department store.
Henry would pay the same amount for the electric stove at the department store and at the superstore.
Henry would pay more for the electric stove at the department store.
To calculate the price Henry would pay at the superstore, we need to add a 30% markup to the wholesale price.
Markup amount = 30% of $699
Markup amount = 0.30 * $699
Markup amount = $209.70
Price at superstore = wholesale price + markup amount
Price at superstore = $699 + $209.70
Price at superstore = $908.70
Therefore, Henry would pay $908.70 for the electric stove at the superstore.
To calculate the price Henry would pay at the department store, we first need to add a 40% markup to the wholesale price.
Markup amount = 40% of $699
Markup amount = 0.40 * $699
Markup amount = $279.60
Price at department store = wholesale price + markup amount
Price at department store = $699 + $279.60
Price at department store = $978.60
Since Henry would receive a 10% discount off the in-store price, we need to calculate the discounted price.
Discount amount = 10% of $978.60
Discount amount = 0.10 * $978.60
Discount amount = $97.86
Price after discount = in-store price - discount amount
Price after discount = $978.60 - $97.86
Price after discount = $880.74
Therefore, Henry would pay $880.74 for the electric stove at the department store.
Comparing the prices:
Henry would pay more for the electric stove at the superstore ($908.70) compared to the department store ($880.74).
Therefore, the true statement is: Henry would pay more for the electric stove at the superstore.