Math Problem Statement

The wholesale cost of a birdcage is $55. The original markup was 46% based on selling price. Find the final sale price (in $) after the following series of price changes: a markdown of 14% and a markup of 13%. (Round each intermediate selling price to the nearest cent.)

Solution

To find the final sale price of the birdcage, we will follow these steps:

Step 1: Find the original selling price based on the wholesale cost and the markup percentage.

The formula for markup based on the selling price is:

Markup based on selling price=Selling priceWholesale costSelling price\text{Markup based on selling price} = \frac{\text{Selling price} - \text{Wholesale cost}}{\text{Selling price}}

Given that the markup is 46%, this means:

Selling price55Selling price=0.46\frac{\text{Selling price} - 55}{\text{Selling price}} = 0.46

Let xx represent the selling price. Rearranging the equation:

x55=0.46xx - 55 = 0.46x x0.46x=55x - 0.46x = 55 0.54x=550.54x = 55 x=550.54101.85x = \frac{55}{0.54} \approx 101.85

So, the original selling price is $101.85.


Step 2: Apply the 14% markdown to the original selling price.

The formula for markdown is:

New price=Original price×(1Markdown percentage)\text{New price} = \text{Original price} \times (1 - \text{Markdown percentage})

Here, the markdown is 14%, so:

New price=101.85×(10.14)=101.85×0.8687.59\text{New price} = 101.85 \times (1 - 0.14) = 101.85 \times 0.86 \approx 87.59

After the markdown, the new price is $87.59.


Step 3: Apply the 13% markup to the new price.

The formula for markup is:

New price=Current price×(1+Markup percentage)\text{New price} = \text{Current price} \times (1 + \text{Markup percentage})

Here, the markup is 13%, so:

New price=87.59×(1+0.13)=87.59×1.1398.98\text{New price} = 87.59 \times (1 + 0.13) = 87.59 \times 1.13 \approx 98.98

After the markup, the final sale price is $98.98.


Final Answer: The final sale price of the birdcage is $98.98.

Would you like further details on any of these steps?


Related Questions:

  1. What would the selling price be if the initial markup was 50%?
  2. How would the final price change if the markdown was 10% instead of 14%?
  3. What would be the final price if there was an additional 5% discount after the last markup?
  4. How is the final price affected if both the markdown and markup were 20%?
  5. What would happen if the markup was based on the wholesale price instead of the selling price?

Tip: When dealing with percentages, always clarify whether it's based on the selling price or cost price to avoid confusion.

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Math Problem Analysis

Mathematical Concepts

Percentage
Markup and Markdown
Algebra

Formulas

Markup based on selling price: (Selling price - Wholesale cost) / Selling price
Markdown formula: New price = Original price × (1 - Markdown percentage)
Markup formula: New price = Current price × (1 + Markup percentage)

Theorems

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Suitable Grade Level

Grades 8-10