Question

You are choosing between two plans at a discount warehouse. Plan A offers an annual membership fee of ​$30 and you pay 90​% of the​ manufacturer's recommended list price. Plan B offers an annual membership fee of ​$90 and you pay 70​% of the​ manufacturer's recommended list price. How many dollars of merchandise would you have to purchase in a year to pay the same amount under both​ plans? What will be the cost for each​ plan?

Answer 1

The cost for plan A and plan B at a discount warehouse is $57 and $153 respectively.

Equation

Plan A:

• Membership fee = $30

Manufacturer's recommended list price = 90%

= 90% × 30

= 0.9 × 30

= $27

Total cost of plan A = $30 + $27

= $57

Plan B:

• Membership fee = $90

Manufacturer's recommended list price = 70%

= 70% × 90

= 0.7 × 90

= $63

Total cost of plan B = $90 + $63

= $153

Therefore, the cost for plan A and plan B at a discount warehouse is $57 and $153 respectively.

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