Question

Sunshine Music Shop bought a stereo for $600 and marked it up 40% on selling price. To promote customer interest Sunshine marked the stereo down 10% for 1 week. Since business was slow, Sunshine marked the stereo down an additional 5%. After a week, Sunshine marked the stereo up 2%. I need help on A, B, C, D and E please.

Answer 1

The stereo's price after sequential price alterations – initial markup, two markdowns, and a final markup – is calculated step-by-step using percentage operations on the original purchase price, leading to the final selling price.

Step-by-step explanation:

The question pertains to a series of price alterations on a stereo at Sunshine Music Shop. Initially, the stereo is purchased for $600 and marked up by 40%, creating a new selling price. The stereo is then subjected to a succession of discounts and a final markup. To accurately determine the stereo's price after each change, we must apply percentage calculations sequentially.

Step-by-Step Price Calculation:

1. Initial markup of 40% on the $600 purchase price: $600 + 40% of $600 = $600 + 0.40 × $600 = $600 + $240 = $840.
2. First markdown of 10%: 10% of $840 = 0.10 × $840 = $84, so the new price becomes $840 - $84 = $756.
3. Second markdown of 5%: 5% of $756 = 0.05 × $756 = $37.80, so the price is now $756 - $37.80 = $718.20.
4. Subsequent markup of 2%: 2% of $718.20 = 0.02 × $718.20 = $14.364, so the final price becomes $718.20 + $14.364 = $732.564, which we can round to $732.56.

Throughout this process, the initial markup significantly elevates the price, while each discount reduces it, and the final small markup slightly increases it again, resulting in the final selling price.