Answer: you would have to purchase $1300 of merchandise and the total yearly amount paid to the warehouse for each plan is $1210
Step-by-step explanation:
Let x represent the number of dollars of merchandise that you would have to purchase in a year to pay the same amount under both plans.
Plan A offers an annual membership fee of $300 and you pay 70%, of the manufacturers reccomended list price. This means that the total cost of using plan A would be
300 + 0.7x
Plan B offers an annual membership fee of $40 and you pay 90% of the manufacturers reccomended list price.
This means that the total cost of using plan B would be
40 + 0.9x
For both plans to be the same,
300 + 0.7x = 40 + 0.9x
0.9x - 0.7x = 300 - 40
0.2x = 260
x = $1300
The total yearly amount paid to the warehouse for each plan would be
40 + 0.9 × 1300 = $1210
