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.
In the department store, the marked up price of the refrigerator is 629*1.3 = $817.70. With the 20% discount, John would then pay 817.70*0.8 = $654.16.
In the superstore, the marked up price of the refrigerator is 629*1.1 = $691.90. Since John is not a member of the loyalty program, he would pay the full in-store price of $691.90.
Therefore, John would pay more for the refrigerator at the superstore.
The true statement is: John would pay more for the refrigerator at the superstore.
To find out how much John would pay for the refrigerator at the department store, follow these steps:
1. Calculate the markup price:
Markup price = Wholesale price + (Wholesale price * Markup percentage)
Markup price = $629 + ($629 * 0.30)
Markup price = $629 + $188.70
Markup price = $817.70
2. Calculate the discount:
Discount = Markup price * Discount percentage
Discount = $817.70 * 0.20
Discount = $163.54
3. Calculate the final price:
Final price = Markup 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 price:
Markup price = Wholesale price + (Wholesale price * Markup percentage)
Markup price = $629 + ($629 * 0.10)
Markup price = $629 + $62.90
Markup price = $691.90
Therefore, John would pay $691.90 for the refrigerator at the superstore.
Comparing the prices, we can see that John would pay more for the refrigerator at the superstore ($691.90) compared to the department store ($654.16).
Therefore, the true statement is: John would pay more for the refrigerator at the superstore.