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.
(a) 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?
$
(b) 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?
$
(c) 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.
(a) Nicole would pay $709.56 at the pro shop.
(b) Nicole would pay $508.50 from the distributor.
(c) Nicole would pay less for the golf clubs if she gets them from the distributor.
(a) To calculate the price at the pro shop, we need to add the markup percentages to the wholesale price.
First, the distributor marks up the wholesale price by 10%:
10% of $339 = $33.90
The new price after the distributor's markup is:
$339 + $33.90 = $372.90
Then, the pro shop marks up the price by an additional 40%:
40% of $372.90 = $149.16
The final price at the pro shop is:
$372.90 + $149.16 = $522.06
Therefore, Nicole would pay $522.06 for the golf clubs at the pro shop.
(b) To calculate the price from the distributor, we need to add their markup percentage to the wholesale price.
The distributor marks up the wholesale price by 50%:
50% of $339 = $169.50
The new price from the distributor is:
$339 + $169.50 = $508.50
Therefore, Nicole would pay $508.50 for the golf clubs from the distributor.
(c) Based on the calculations, it is clear that Nicole would pay less for the golf clubs if she gets them at the pro shop, as the price at the pro shop is $522.06, while the price from the distributor is $508.50.