Question

The wholesale cost of a sofa is $520. Based on selling price, the original markup was 69%. Find the final sale price after the following series of price changes occurred: a markdown of 13%, a markup of 30%, and a second markdown of 36%. Round each intermediate selling price to the nearest cent.

Answer 1

$1214.19

Explanation:

Let c and p represent the cost of the sofa and the original selling price, respectively. The original markup was 0.69·p, so we have ...

c + 0.69p = p . . . . . based on selling price, the original markup was 69%

c = p(1 -0.69) = 0.31p . . . . subtract the markup

p = c/0.31 . . . . . . . . . . . . . divide by the coefficient of c

So, the original selling price was ...

520/0.31 ≈ 1677.42

The first markdown decreased the selling price to ...

1677.42 - 0.13·1677.42 = 0.87·1677.42 ≈ 1459.36

The markup increased the selling price to ...

1459.36 +0.30·1459.36 ≈ 1897.17

And the final markdown decreased the selling price to ...

1897.17 -0.36·1897.17 ≈ 1214.19

The final sale price was $1214.19.