Question

You are shopping for a new printer to take back to college with you. You decide on the PIXMA iP100 due to its superior photo print quality and are now looking for the best price. Different stores have different deals, plus the manufacturer was offering a $30 mail-in post-purchase rebate. You determined from the Canon website that the MSRP for the printer was $299 but one online store had it listed for $279. That price included free shipping, which you figured was at least a $20 savings. In addition, the seller included a USB cord necessary to connect the printer to your laptop, which was priced at $25 on Canon's website. While the online store paid for shipping, there was a $5 fee to insure the printer during shipping. The online store did take trade-ins of old printers, but you didn't have any used printers to trade anyway. Finally, the online store offered a special holiday coupon on this printer that was good for an additional $10 off the price of the printer.
21. What was your final price for the printer?
a)$244
b) $219
c) $209
22. Assuming that the store’s cost for the printer and the USB cord was 50% of its list price and that shipping was set at its cost, what were the seller’s costs for this transaction?
a)$164.50
b) $152
c)$172
23. How much profit did the online store make on the sale of this printer?
a)$102
b) $82
c) $92
24. If the online store charged $209 for the printer, what percentage discount would you have received from MSRP?
a)30%
b)25%
c)20%
25. For most products, a decrease in price will _______
a)value.
b)have no effect on
c)increase
d)decrease

Answer 1

Answer:

21. a)$244

22. b) $152

23. c) $92

24. a)30%

25 c)increase

Explanation:

21. Final price of the printer = listed price $279 - $30 mail-in post-purchase rebate + $5 fee to insure the printer during shipping - additional $10 off the price of the printer = $244

22. the seller’s costs for this transaction = 50% its price for the printer & USB = 50% * $279 + 50% * 25= $152

23. The profit on sale of this printer = final price – cost for this transaction = $244 - $152 = $92

24 Manufacturer suggested retail price is $2999; and if the online store charged $209 for the printer, the percentage of discount = (299-209)/299 = 30%

25. For most products, a decrease in price will increase value