Question

A retailer discovers that 50% of the total inventory items delivered from the manufacturer are damaged. The original purchase for all inventory was $1,100. The retailer decides to return 20% of the damaged inventory for a full refund and keep the remaining 80% of damaged inventory. What is the value of the merchandise returned?

a) $110
b) $220
c) $330
d) $440

Answer 1

The retailer returns 20% of the damaged inventory which equates to $110. This is 20% of the $550 worth of damaged goods from the original $1,100 inventory purchase.

Step-by-step explanation:

The question asks to calculate the value of the merchandise returned by a retailer. The original purchase of the inventory was $1,100. Given that 50% of the inventory was damaged, the damaged inventory amounts to $550. The retailer decides to return 20% of the damaged inventory for a full refund. Therefore, the value of the merchandise returned is 20% of $550, which amounts to $110.