Question

A certain brand of laundry detergent is manufactured for $3.85 and then marked up 40% by the local store before selling. The store offers a 20% discount with the purchase of three or more bottles of the detergent. Showing all work, determine the total cost, before tax, of five bottles of detergent. (10 points)

Answer 1

$21.56

Explanation:

• Original price = $3.85
• Marked up by 40% = 3.85 x 1.4 = $5.39 per bottle

Cost and discount of 5 bottles

1. Cost = 5 x 5.39 = $26.95
2. Discount of 20% = 26.95 x 0.8 = $21.56

Answer 2

$21.56

Explanation:

Original cost of one bottle of detergent = $3.85

Cost of one bottle after 40% mark up = 1.4 × $3.85 = $5.39

Cost of 5 bottles = 5 × $5.39 = $26.95

Cost of 5 bottles after applying 20% discount = 0.8 × $26.95 = $21.56

Therefore, the total cost of 5 bottles of detergent is $21.56

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Information about percetange increase/decrease

If you increase the price of something by 40% then it will be 140% of the original price (the original price is 100% and 100% + 40% = 140%).

Convert to decimal form: 140% = 140/100 = 1.4

Therefore, to calculate an increase of 40%, multiply the original price by 1.4

If you decrease the price of something by 20% then it will be 80% of the previous price (the original price is 100% and 100% - 20% = 80%).

Convert to decimal form: 80% = 80/100 = 0.8

Therefore, to calculate a decrease of 20%, multiply the previous price by 0.8