DeWitt Company sells a kitchen set for $445. To promote July 4,
DeWitt ran the following advertisement:
Beginning each hour up to 4 hours we will mark down the kitchen set
12%. At the end of each hour, we will mark up the set 2%.
Assume Ingrid Swenson buys the set 1 hour 50 minutes into the
sale.
a. What will Ingrid pay? (Round your
answer to the nearest cent.)
b. What is the markdown percent?
(Enter your response as a percentage
rounded to two decimal places.)
Beginning of each hour = mark down 12%
End of each hour =mark up 2%
Price at the beginning of first hour ($445)*(100%-12%) | $391.6 | MARK DOWN |
Price at the end of first hour ($391.6)(100%+2%) | $399.432 | MARK UP |
Price at the beginning of second hour ($399.432)(100%-12%) | $351.50 | MARK DOWN |
Price at the end of second hour ($351.50)(100%+2%) | $358.53 | MARK UP |
As purchase is made at the 1 hour 50 minutes it will be between beginning of second hour and before the end of second hour
so price would be $351.50
(2) Mark down percent
actual price-price paid/actual price
=[$445-$351.50] / $445
=21.01%
DeWitt Company sells a kitchen set for $445. To promote July 4, DeWitt ran the following...
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