Question

2. A certain TV can be purchased from the manufacturer for $160. A certain online retailer has a standard markup of 30%, and a certain superstore has a standard markup of 40%.
(a) What is the price of the TV when purchased online? What is the price of the TV when purchased at the superstore?
(b) What is the difference between the prices in Part (a)? How does this relate to the difference in the markup?

Answer 1

Price, when purchased online:  1.30($160)
Price, when purchased at superstore:  1.40($160)

Difference in prices:  1.40($160) - 1.30($160) = 0.10($160) = $16

A higher markup brings a higher retail price.