Question

Pairs of shoes are manufactured for $24. They are sold to a warehouse with a mark-up of 15%. The warehouse sells the shoes to a distributor after charging a holding fee of $10 per pair. The distributor sells them to ‘Fine Shoes’ for a percentage profit of 12%. The store then marks them up by 30%.

a. Determine the price of a pair of shoes if you buy it from one of the ‘Fine Shoes’ stores (round to the nearest 5 cents). Show working out.

Answer 1

Answer: ‭$54.75

Explanation:

The price the shoes are sold to the warehouse is:

= 24 * ( 1 + 15%)

= 24 * 1.15

= $27.60

The price the warehouse sells it is:

= 27.60 + 10

= $37.60

Price distributor sells is:

= 37.60 * 1.12

= $42.112

Fine shoes will then sell at 30% profit:

= 42.112 * 1.3

= $‭54.7456‬

= ‭$54.75