Question

A company produces a set of blocks. It costs them $5 to make. They mark it up 300% when they sell it to a toy distributor. The toy distributor marks it up an additional 150% when they sell it to a local toy store. The local toy store marks it up in additional 200%. They have a 30% off sale. You also have a coupon for an additional 15% off. Sales tax is 8%. How much did you pay for the set of blocks?

Answer 1

Hello! So, the toy company makes blocks that cost $5 to make. Then, they mark it up by 300%, which is marking the price up by 4. 100% markup is doubling the price, 200% is tripling the price, and 300% marks the price up by 4. Then, the blocks would cost $20. After that, the price would be marked up by 150%, so that’s 2.5 times the price of the original. When you do $20 by 2.5, then the blocks cost $50. The local toy store will mark the block up by 200%, which as said before, is tripling the price. Then, you do 50 * 3, and then the price of the blocks is $150. Then, it gets marked off by 30% and 10% of 150 is 15, so 30% off 150 is 45. When you do 150 - 45, the difference is $105. Then, you take off an additional 15%, But you would still have to pay 85% of the original price. You would do 105 * 0.85, and then you would get $89.25 for the blocks. But that’s not all. You have to pay 8% sales tax for the blocks. You can find the tax by doing 89.25 * 0.08 and then adding the prices together. Or, you can do 89.25 * 1.08 to find the total price. Either way, the product should be 96.39. The total price you paid for the blocks is $96.39.