Question

A certain tv can be purchased from the manufacturer for $160 a certain retailer has a standard markup of 30% abd a certain superstore has a standard markup of 40% what is the price of the tv when purchased online what is the price of the tv when purchased at the superstore what is the difference between the prices how does this rate to the difference in the mark up

Answer 1

Part A:

The price of the tv when purchased online is given by

$160\left( \frac{100+30}{100} \right)=160\left(\frac{130}{100}\right) \\ \\ =160(1.3)=\ 208$



Part B:

The price of the tv when purchased at the superstore is given by:

$160\left( \frac{100+40}{100} \right)=160\left(\frac{140}{100}\right) \\ \\ =160(1.4)=\ 224$



Part C:

The difference between the prices is given by $224 - $208 = 16

For every 10% increase in the markup, the prices increases by $16.