Nicole is looking for the best deal on a set of golf clubs that has a wholesale price of
$339
. Help her compare the price of the golf clubs in different situations by completing the following.
Nicole can go to a pro shop that she knows has the golf clubs. This pro shop gets them from a distributor who marks up the wholesale price
10%
. Then the pro shop marks them up by an additional
40%
. Ignoring tax, how much would Nicole pay for the golf clubs at this pro shop?
$
Nicole can also buy the golf clubs from a distributor that does direct-to-customer sales. When selling directly to individual customers, this distributor marks up the wholesale price
50%
. Ignoring tax, how much would Nicole pay for the golf clubs if she gets them from this distributor?
$
Select the true statement.
Nicole would pay less for the golf clubs if she gets them at the pro shop.
Nicole would pay less for the golf clubs if she gets them directly from the distributor.
Nicole would pay the same amount if she gets the golf clubs from the distributor or at the pro shop.
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.
Nicole would pay less for the golf clubs if she gets them directly from the distributor.
Henry would pay more for the electric stove at the department store.
To calculate the price of the golf clubs at the pro shop, we first calculate the markup by the distributor, which is 10% of $339.
Markup by distributor = 10% of $339 = $33.90
To calculate the price at the pro shop, we add the markup by the distributor to the wholesale price and then calculate the additional markup by the pro shop, which is 40% of the total price.
Price at pro shop = Wholesale price + Markup by distributor + Markup by pro shop
Price at pro shop = $339 + $33.90 + (40% of ($339 + $33.90))
Now let's calculate the price at the distributor. The markup by the distributor is 50% of the wholesale price.
Markup by distributor = 50% of $339 = $169.50
Price at distributor = Wholesale price + Markup by distributor
Price at distributor = $339 + $169.50
To find the difference in price between the pro shop and the distributor, we can compare the two prices.
Price difference = Price at pro shop - Price at distributor
If the price difference is positive, it means Nicole would pay more at the pro shop. If the price difference is negative, it means Nicole would pay less at the pro shop.
Now let's calculate the price of the electric stove at the superstore. The markup by the superstore is 30% of the wholesale price.
Markup by superstore = 30% of $699 = $209.70
Price at superstore = Wholesale price + Markup by superstore
Price at superstore = $699 + $209.70
Next, let's calculate the price of the electric stove at the department store. The markup by the department store is 40% of the wholesale price. However, Henry would receive a 10% discount off the in-store price due to the customer loyalty program.
Markup by department store = 40% of $699 = $279.60
Discount at department store = 10% of Markup by department store
Discount at department store = 10% of $279.60 = $27.96
Price at department store = Wholesale price + Markup by department store - Discount at department store
Price at department store = $699 + $279.60 - $27.96
To find the difference in price between the superstore and the department store, we can compare the two prices.
Price difference = Price at superstore - Price at department store
If the price difference is positive, it means Henry would pay more at the superstore. If the price difference is negative, it means Henry would pay less at the superstore.