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 calculate the price Frank would pay for the television at the superstore, we need to add the 20% markup to the wholesale price of $619.
Markup = 20% of $619 = 0.2 * $619 = $123.80
Price at superstore = Wholesale price + Markup = $619 + $123.80 = $742.80
Therefore, Frank would pay $742.80 for the television at the superstore.
To calculate the price Frank would pay for the television at the department store, we need to first add the 30% markup to the wholesale price of $619.
Markup = 30% of $619 = 0.3 * $619 = $185.70
Price before discount at department store = Wholesale price + Markup = $619 + $185.70 = $804.70
Then, we need to subtract the 10% discount from the price before the discount.
Discount = 10% of $804.70 = 0.1 * $804.70 = $80.47
Price at department store = Price before discount - Discount = $804.70 - $80.47 = $724.23
Therefore, Frank would pay $724.23 for the television at the department store.
Comparing the two prices, we can see that Frank would pay less for the television at the department store ($724.23) than at the superstore ($742.80).
Therefore, the true statement is: Frank would pay less for the television at the department store.