Question

A store bought a sofa wholesale for $200 and marked it up 15%. When the sofa didn't sell, they reduced the price by 15%. Explain and show why the current price is not $200.

Answer 1

The current price of sofa is $195.50.

Explanation:

Cost price of the sofa for the store = $200

Now, the store marked it up 15%.

So, marked price of sofa = $200 + 15% of $200

`=200+(15)/(100)*200`

=200 + 30

=$230

Now, it is given that the sofa could not sell at this price. So, the store reduces its price by 15% now.

So, current price of sofa = $230 - 15% of $230

`=230-(15)/(100)*230`

`=230-(3450)/(100)`

= 230 - 34.5

=$195.5

So, the current price of the sofa is $195.50.