Math Problem Statement

The wholesale cost of a birdcage is $55. The original markup was 44% based on selling price. Find the final sale price (in $) after the following series of price changes: a markdown of 18% and a markup of 11%. (Round each intermediate selling price to the nearest cent.)

Solution

We are tasked with finding the final sale price of a birdcage, given a series of price changes. Here's the step-by-step approach:

  1. Step 1: Calculate the original selling price (before price changes)
    The wholesale cost of the birdcage is $55, and the original markup is 44% based on the selling price. Let pp represent the original selling price.

    The formula for markup based on selling price is: Wholesale cost=p0.44p=0.56p\text{Wholesale cost} = p - 0.44p = 0.56p Solving for pp: 55=0.56p55 = 0.56p p=550.56=98.21p = \frac{55}{0.56} = 98.21 So, the original selling price is p=98.21p = 98.21.

  2. Step 2: Apply an 18% markdown
    The birdcage is marked down by 18%, so the new price after the markdown is calculated as: New price after markdown=98.21×(10.18)=98.21×0.82=80.53\text{New price after markdown} = 98.21 \times (1 - 0.18) = 98.21 \times 0.82 = 80.53 After rounding, the price after the markdown is 80.5380.53.

  3. Step 3: Apply an 11% markup
    Now, we apply an 11% markup to the new price. The price after the markup is calculated as: New price after markup=80.53×(1+0.11)=80.53×1.11=89.39\text{New price after markup} = 80.53 \times (1 + 0.11) = 80.53 \times 1.11 = 89.39 After rounding, the final selling price is 89.3989.39.

Final Sale Price:

The final sale price after the series of price changes is $89.39.

Would you like more details or have any questions?
Here are 5 related questions you might want to consider:

  1. How does the original markup calculation differ when based on cost instead of selling price?
  2. What happens if the markdown is greater than the markup?
  3. How can you apply these concepts to pricing strategies in retail?
  4. How would the problem change if intermediate rounding wasn’t allowed?
  5. How does inflation or deflation impact pricing strategies like this?

Tip: Always double-check the base you're using for percentage calculations (selling price vs. cost). It changes the markup or markdown amounts significantly!

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Math Problem Analysis

Mathematical Concepts

Markup and Markdown
Percentage Calculations
Algebra

Formulas

Wholesale cost = Selling price - Markup
New price after markdown = Original price × (1 - Markdown percentage)
New price after markup = Price after markdown × (1 + Markup percentage)

Theorems

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Suitable Grade Level

Grades 9-12