Answer:
1) The consumer must pay AED 1750 for the television
2) The single % effect of the two markups is 250%
The % increase takes the price from AED 880 to the final price in
question 1 is 98.86%
Explanation:
* Lets explain how to solve the problem
- A television costs AED 700 for the manufacturer to produce
∴ The cost of the television is 700
- The manufacturer marks the price up by 25% and sells the television
to a retailer
- Assume that the cost of the television is 100%
∵ The manufacturer marks the price up by 25%
∴ The price of the television for the retailer is 100% + 25% = 125%
∵ The cost of the television is 700
∴ The price for the retailer = 700 × 125% = 700 × 125/100 = 875
∴ The price for the retailer is 875
- The retailer marks the price up 100%, before selling the television
to the consumer
- Assume that the retailer's price for the television is 100%
∵ The retailer marks the price up 100%
∴ The price of the television for the consumer is 100% + 100% = 200%
∵ The retailer's price is 875
∴ The consumer's price = 875 × 200% = 875 × 200/100 = 1750
1) The consumer must pay AED 1750 for the television
∵ The original price is 700 and the final price is 1750
∵ The percentage of increase = new /old × 100%
∴ The percentage of increase =
∴ The percentage of increase =
2) The single % effect of the two markups is 250%
∵ The old price is AED 880
∵ The final Price is AED 1750
∴ The percentage of increase =
∴ The percentage of increase =
* The % increase takes the price from AED 880 to the final price in
question 1 is 98.86%