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Sergeu [11.5K]
2 years ago
6

A store sells pool floats.

Mathematics
1 answer:
Andrei [34K]2 years ago
6 0

Step-by-step explanation:

the original retail price was 120% of the manufacturer price (100% manufacturer price + 20% markup).

now, the whole retail price is reduced by 12%.

that means we have to subtract 12% from the 120%.

but careful, we cannot just do 120-12=108.

that is simply because these 120% are now for this calculation the new basic amount and therefore 100%.

we actually need to calculate and subtract 12% of 120 to get the new percentage over the manufacturer price.

we do this by multiplying 120 by (100-12)/100 = 88/100 = 0.88 :

120 × 0.88 = 105.6%

so, the new retail price is now only 5.6% over the manufacturer price.

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