Question

A department store purchases logo shirts at a cost of $10 per shirt. They increase the price 100% and put them on the sales floor. Every month that a shirt doesn’t sell, the store reduces the selling price by 25%. After three monthly reductions, the final shirt from the shipment is sold. There is a 5% sales tax on the selling price. Explain the steps for finding the final cost to the customer for that shirt?

Answer 1

The original selling price is found by multiplying 100% by $10 and adding that to the original $10. The logo shirt goes on the sale floor for $20. Each of the next three months, the reduced price is found by multiplying the current sale price by 75%. The tax is found by multiplying 5% by the final discounted price and adding the tax to the final sale price.

Answer 2

Answer:

Sample response: The original selling price is found by multiplying 100% by $10 and adding that to the original $10. The logo shirt goes on the sale floor for $20. Each of the next three months, the reduced price is found by multiplying the current sale price by 75%. The tax is found by multiplying 5% by the final discounted price and adding the tax to the final sale price.