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 t
oy 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?
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.
We have that both variables increases, then we have a positive relation. A curvilinear option can not be possible because with this option in some regions could happen that when one variable increases the other one decreases. The negative linear relation can no be because with this option when one variable increases the other decreases. A non linear option is the same as a curvilinear option then can not be possible. Then the best option is a positive linear relationship.