Question

The wholesale price for a chair is $194. A certain furniture store marks up the wholesale price by 31%.

a. Determine the retail price after the markup.
b. If the chair is later discounted by 15%, calculate the final selling price.

Answer 1

The retail price of the chair after a 31% markup on the $194 wholesale price is $254.14. After applying a 15% discount, the final selling price is $216.02.

Step-by-step explanation:

To determine the retail price after a markup of 31% on the wholesale price of a chair that costs $194, we calculate 31% of $194 and add it to the original price:

Markup amount = 0.31 × $194 = $60.14

Retail price = Wholesale price + Markup amount

Retail price = $194 + $60.14 = $254.14

For the second part of the question, to find the final selling price after a 15% discount, we first calculate 15% of the retail price and then subtract it from the retail price:

Discount amount = 0.15 × $254.14 = $38.12

Final selling price = Retail price - Discount amount

Final selling price = $254.14 - $38.12 = $216.02