Frank is looking for the best deal on a television that has a wholesale price of
$619. Help him compare the price of the television at two different stores by completing the following.
Frank goes to a superstore that marks up the television's wholesale price
20%. Ignoring tax, how much would he pay for the television at this store?
$
Frank then looks at the television in a department store that marks up the television's wholesale price 30%. 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?
$
Select the true statement.
Frank would pay less for the television at the superstore.
Frank would pay less for the television at the department store.
Frank would pay the same amount for the television at the department store and at the superstore.
Frank would pay less for the television at the department store.
To determine the price Frank would pay for the television at each store, we'll calculate the price after the respective markups and discounts.
1. Superstore:
Markup: 20% of $619 = $123.8
Price at superstore = Wholesale price + Markup = $619 + $123.8 = $742.8
2. Department Store:
Markup: 30% of $619 = $185.7
Price before discount at department store = Wholesale price + Markup = $619 + $185.7 = $804.7
Discount: 10% of $804.7 = $80.47
Price at department store = Price before discount - Discount = $804.7 - $80.47 = $724.23
Therefore, Frank would pay $742.8 at the superstore and $724.23 at the department store.
The true statement is:
Frank would pay less for the television at the department store.