You belong to a wholesale buying club. You can order items from theclub with a m
ID: 3089578 • Letter: Y
Question
You belong to a wholesale buying club. You can order items from theclub with a markup of 8% over the wholesale price. A local retailstore, which gets its merchandise at the same wholesale price,offers to sell you those same items at 10% off the shelf price.What does the retail store’s markup have to be for it to becheaper for you to buy through your club? Please show & explain the steps to taken to arrive @ theanswer
You belong to a wholesale buying club. You can order items from theclub with a markup of 8% over the wholesale price. A local retailstore, which gets its merchandise at the same wholesale price,offers to sell you those same items at 10% off the shelf price.
What does the retail store’s markup have to be for it to becheaper for you to buy through your club? Please show & explain the steps to taken to arrive @ theanswer
Explanation / Answer
Approach: Let us assume that the wholesale price is x, and the shelf price isy. 1.08x is what you would pay at the wholesale club. z is that markup on the wholesale price .9xz is what you would pay at the retail store. 0.9xz = 1.08x z = 1.08/.9 = 1.2 = 20% markup This is the markup for your price to be equal, so the markup mustbe > 20% in order for it to be cheaper at the club.
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