Question

1. A TCL 6 series 2018 Roku TV can be purchased from the manufacturer for $830. A certain online retailer has a standard markup of 35%, and a certain superstore has a standard markup of 45%.

A: What is the price of the TV when purchased online? What is the price of the TV when purchased at the superstore? Show all of your work.

B: What is the difference between the prices in Part A? Show your work. How does this relate to the difference in the markup? (Make sure you use at least one full sentence explaining your answer).

Answer 1

A: Price of TV, when purchased online=$1120.5

Price of TV, when purchased at the superstore=$1203.5

B: Difference= $83.

Explanation:

We have been given that a TCL 6 series 2018 Roku TV can be purchased from the manufacturer for $830. A certain online retailer has a standard markup of 35%, and a certain superstore has a standard markup of 45%.

A: Let us find price of TV, when purchased online.

`\text{Price of TV, when purchased online}=\text{Manufacturing price+ Mark up of 35 percent}`

`\text{Price of TV, when purchased online}=830+ 830*(35)/(100)`

`\text{Price of TV, when purchased online}=830+ 830*0.35`

`\text{Price of TV, when purchased online}=830+ 290.5`

`\text{Price of TV, when purchased online}=1120.5`

Therefore, the price of TV, when purchased online is $1120.5.

Now let us find price of TV, when purchased at superstore.

`\text{Price of TV, when purchased at the superstore}=\text{Manufacturing price+ Mark up of 45 percent}`

`\text{Price of TV, when purchased at store}=830+830*(45)/(100)`

`\text{Price of TV, when purchased at the superstore}=830+830*0.45`

`\text{Price of TV, when purchased at the superstore}=830+373.5`

`\text{Price of TV, when purchased at the superstore}=1203.5`

Therefore, the price of TV, when purchased at the superstore is $1203.5.

B: Now let us subtract 1120.5 from 1203.5 to find difference between the prices at the superstore and online.

`\text{Difference of prices}=1203.5-1120.5`

`\text{Difference of prices}=83`

Since 45% markup is greater than 35% of markup, therefore, price of TCL 6 series TV is $83 greater while buying from superstar than buying online.