Question

The O! Company sells a juice in 1 gallon bottles. The current retail price of the juice is $3.50 for 1 gallon. In order to remain competitive, the company will decrease the price to $3.20 .
a. What percent of the original price are consumers going to pay?
b. Suppose the company's cost per 1 gallon is $2.70. What is the markup if they sell each gallon at &3.20? What is the markup if they sell each gallon at 3.50?

Answer 1

A) that’s a $.30 decrease so to find the percent you do the formula
3.50x=.30
3.50x/3.50=.30/3.50
X=.0857
.0857=8.57% so$3.20 is 8.57% of $3.50
B) $3.20 markup=18.5% and $3.50 markup is 29.6% but this depends on where you round up at and you get the answer the same way, with the formula $2.70x=.80 because $3.50-$2.70 =.80