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 superstore.
To find out how much Frank would pay for the television at the superstore, we need to calculate the markup amount and add it to the wholesale price:
Markup amount = Wholesale price * Markup percentage
= $619 * 20%
= $619 * 0.20
= $123.80
Total price at the superstore = Wholesale price + Markup amount
= $619 + $123.80
= $742.80
Therefore, 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:
Markup amount = Wholesale price * Markup percentage
= $619 * 30%
= $619 * 0.30
= $185.70
In-store price at the department store = Wholesale price + Markup amount
= $619 + $185.70
= $804.70
Discount amount = In-store price * Discount percentage
= $804.70 * 10%
= $804.70 * 0.10
= $80.47
Total price at the department store = In-store price - Discount amount
= $804.70 - $80.47
= $724.23
Therefore, Frank would pay $724.23 for the television at the department store.
Comparing the prices, we can see that Frank would pay less for the television at the department store ($724.23) compared to the superstore ($742.80).
Therefore, the true statement is: Frank would pay less for the television at the department store.