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 find out how much Frank would pay for the television at the superstore, you need to add the markup to the wholesale price.
Markup = Wholesale Price * Markup Percentage
Markup = $619 * 0.20
Markup = $123.80
The price Frank would pay at the superstore is the wholesale price plus the markup.
Price at Superstore = Wholesale Price + Markup
Price at Superstore = $619 + $123.80
Price at Superstore = $742.80
To determine the price Frank would pay at the department store, we need to calculate the markup first.
Markup = Wholesale Price * Markup Percentage
Markup = $619 * 0.30
Markup = $185.70
After calculating the markup, we can determine the discounted price using the loyalty program.
Discounted Price = Markup - (Markup * Discount Percentage)
Discounted Price = $185.70 - ($185.70 * 0.10)
Discounted Price = $185.70 - $18.57
Discounted Price = $167.13
So Frank would pay $742.80 for the television at the superstore and $167.13 at the department store.
The true statement is:
Frank would pay less for the television at the department store.