Question

A sporting goods store sells jerseys with the name of the local football team. The store owner buys 80 jerseys at a wholesale price of 55 each and applies his standard retail markup of 65%. When the local team made it to the playoffs, the store owner marked up the retail price by 25%. After the local team lost the championship, the store owner marked down that price by 33%.What was the price when the team was in the playoffs?

Answer 1

The jersey price during the playoffs, after the additional 25% markup, was $113.44.

Step-by-step explanation:

The sporting goods store owner first marks up the jerseys at his standard retail markup of 65%. When the local football team reaches the playoffs, he adds an additional markup of 25%. The question seeks to find out the price of the jerseys during the playoffs.

First, let's calculate the store's standard retail price:

• The wholesale price of one jersey: $55
• Retail markup: 65% of $55 = $35.75
• Standard retail price: $55 + $35.75 = $90.75

Next, the price during the playoffs with an additional 25% markup:

• Additional playoff markup: 25% of $90.75 = $22.6875
• Price during playoffs: $90.75 + $22.6875 = $113.4375

The jersey price during the playoffs was $113.44, rounded to the nearest cent.