Question

A shoe store buys packs of socks wholesale for $5 each and marks them up by 40%. The store decides to discount the packs of socks by 40%. Is the discounted price $5? OA) yes: The packs of socks are marked up to $7 and then discounted to $5. OB) yes; The packs of socks are marked up to $9 and then discounted to $5. OC) no: The packs of socks are marked up to $7 and then discounted to $4.20. OD) no, The packs of socks are marked up to $5.20 and then discounted to $4.99.​

Answer 1

C) no: The packs of socks are marked up to $7 and then discounted to $4.20

Explanation:

You want to know the price of a $5 pair of socks after markup by 40%, and again after that price is marked down 40%.

Marked-up price

When the $5 cost is marked up by 40%, the resulting price is ...

$5 + 0.40×5 = $5 +2 = $7.

The socks are marked up to $7.

Marked-down price

When the $7 price is marked down by 40%, the resulting price is ...

$7 - 0.40×7 = $7.00 -2.80 = $4.20

The socks are discounted to $4.20.