Question

A product costs $0.80, and the initial price for the item is $2.40. However, the average actual sale price for the item is $2.00. The reductions are $0.40. What is the maintained markup?

a) $0.20
b) $0.40
c) $0.60
d) $0.80

Answer 1

The maintained markup is calculated as the average sale price ($2.00) minus the cost of the product ($0.80), which equals $1.20. None of the provided options match this calculated markup.

Step-by-step explanation:

The maintained markup for an item is the difference between the average selling price and the cost of the item after accounting for all reductions. In this case, the initial price of the item is $2.40, and the reductions amount to $0.40, leading to an average actual sale price of $2.00. Thus, the maintained markup can be calculated as the average sale price ($2.00) minus the cost of the product ($0.80).

Maintained Markup = Average Sale Price - Cost of the Product
Maintained Markup = $2.00 - $0.80
Maintained Markup = $1.20

However, none of the options provided (a) $0.20 (b) $0.40 (c) $0.60 (d) $0.80 match the calculated markup of $1.20. Therefore, it seems there is an error in the given options or in the understanding of the question.