Question

A furniture store has a bed that costs $200 in stock. It decreased the price by 30% and then marked up the price by 20%. What is the new price of the bed?

a. $156
b. $168
c. $184
d. $200

Answer 1

After a 30% decrease, the bed's price goes down from $200 to $140. Then, a 20% markup raises the price by $28, making the new price $168. Option (b) is the correct answer.

Step-by-step explanation:

A furniture store has a bed that costs $200. It first decreased the price by 30%, which is a decrease of $200 \times 0.30 = $60. So, the new price after the decrease is $200 - $60 = $140.

Then, the store marked up the price by 20%. The markup on the discounted price is $140 \times 0.20 = $28. So, the new price after the markup is $140 + $28 = $168.

Therefore, the new price of the bed after a 30% decrease followed by a 20% increase is $168, which corresponds to option (b).