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 how much Frank would pay for the television at the superstore, we need to add the markup of 20% to the wholesale price.
Markup = 20% of $619
Markup = 0.20 * $619
Markup = $123.80
Total price at the superstore = Wholesale price + Markup
Total price at the superstore = $619 + $123.80
Total price at the superstore = $742.80
So, Frank would pay $742.80 for the television at the superstore.
Now, let's calculate how much Frank would pay for the television at the department store. We need to add the markup of 30% to the wholesale price.
Markup = 30% of $619
Markup = 0.30 * $619
Markup = $185.70
Total price at the department store before the discount = Wholesale price + Markup
Total price at the department store before the discount = $619 + $185.70
Total price at the department store before the discount = $804.70
Now, let's calculate the discount that Frank would receive as part of the loyalty program. The discount is 10% of the in-store price.
Discount = 10% of $804.70
Discount = 0.10 * $804.70
Discount = $80.47
Total price at the department store after the discount = Total price before the discount - Discount
Total price at the department store after the discount = $804.70 - $80.47
Total price at the department store after the discount = $724.23
So, Frank would pay $724.23 for the television at the department store after the discount.
Comparing the prices:
- Frank would pay $742.80 at the superstore.
- Frank would pay $724.23 at the department store after the discount.
Therefore, the true statement is:
Frank would pay less for the television at the department store.