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.
Nicole would pay less for the golf clubs if she gets them directly from the distributor.
To calculate the price that Nicole would pay for the golf clubs at the pro shop, we need to apply the markups one by one.
First, the distributor marks up the wholesale price by 10%:
10% of $339 = $33.90
Wholesale price + markup = $339 + $33.90 = $372.90
Then, the pro shop marks up the price by an additional 40%:
40% of $372.90 = $149.16
Price at the pro shop = $372.90 + $149.16 = $522.06
Therefore, Nicole would pay $522.06 for the golf clubs at the pro shop.
Now let's calculate the price if Nicole gets the golf clubs directly from the distributor.
The distributor marks up the wholesale price by 50%:
50% of $339 = $169.50
Wholesale price + markup = $339 + $169.50 = $508.50
Therefore, Nicole would pay $508.50 for the golf clubs from the distributor.
Comparing the two prices, we see that Nicole would pay less for the golf clubs if she gets them from the pro shop ($522.06) instead of directly from the distributor ($508.50).
Therefore, the correct statement is:
Nicole would pay less for the golf clubs if she gets them at the pro shop.