John is looking for the best deal on a refrigerator that has a wholesale price of
$629
. Help him compare the price of the refrigerator at two different stores by completing the following.
John looks at the refrigerator in a department store that marks up the refrigerator's wholesale price
30%
. But because of a customer loyalty program, he would receive a
20%
discount off the in-store price. Ignoring tax, how much would he pay for the refrigerator at this store?
$
John then goes to a superstore that marks up the refrigerator's wholesale price
10%
. But he is not a member of the superstore's customer loyalty program. He must pay the full in-store price. Ignoring tax, how much would he pay for the refrigerator at this store?
$
Select the true statement.
John would pay more for the refrigerator at the department store.
John would pay more for the refrigerator at the superstore.
John would pay the same amount for the refrigerator at the department store and at the superstore.
John would pay more for the refrigerator at the department store.
To find out how much John would pay for the refrigerator at the department store, follow these steps:
1. Calculate the markup amount: 30% of $629
Markup = 0.30 * $629
Markup = $188.70
2. Calculate the in-store price:
In-store price = Wholesale price + Markup
In-store price = $629 + $188.70
In-store price = $817.70
3. Calculate the discount amount: 20% of the in-store price
Discount = 0.20 * $817.70
Discount = $163.54
4. Calculate the final price John would pay:
Final price = In-store price - Discount
Final price = $817.70 - $163.54
Final price = $654.16
Therefore, John would pay $654.16 for the refrigerator at the department store.
To find out how much John would pay for the refrigerator at the superstore, follow these steps:
1. Calculate the markup amount: 10% of $629
Markup = 0.10 * $629
Markup = $62.90
2. Calculate the in-store price:
In-store price = Wholesale price + Markup
In-store price = $629 + $62.90
In-store price = $691.90
Therefore, John would pay $691.90 for the refrigerator at the superstore.
Comparing the two prices:
John would pay more for the refrigerator at the superstore because the price of $691.90 is higher than $654.16, which is the price at the department store.