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Difficulty: MediumPercentage Change, Markups, and Discounts

A marine supply store purchases commercial GPS units at a wholesale price of $320.00\$320.00 each. The store applies a 75%75\% markup to establish the regular retail price. During a spring clearance event, the store offers a 20%20\% discount off the regular retail price. What is the final sale price of the GPS unit?

Answer:The final sale price of the GPS unit is $【448】\$【448】.

Answer

The final sale price is $448.00\$448.00.
The final sale price is calculated in two sequential steps. First, the $240.00\$240.00 markup (75%75\% of the $320.00\$320.00 wholesale cost) is added to establish a regular retail price of $560.00\$560.00. Second, the 20%20\% discount is applied to the $560.00\$560.00 retail price, which equals $112.00\$112.00. Subtracting this $112.00\$112.00 discount from the $560.00\$560.00 retail price yields a final sale price of $448.00\$448.00.

Step-by-Step Solution

1
Calculate the markup amount.
$320.00×0.75=$240.00\$320.00 \times 0.75 = \$240.00
To find the dollar amount added to the wholesale cost.
2
Determine the regular retail price.
$320.00+$240.00=$560.00\$320.00 + \$240.00 = \$560.00
To establish the base price before the clearance discount is applied.
3
Calculate the discount amount.
$560.00×0.20=$112.00\$560.00 \times 0.20 = \$112.00
To find the dollar amount subtracted during the clearance sale.
4
Find the final sale price.
$560.00−$112.00=$448.00\$560.00 - \$112.00 = \$448.00
To determine the final cost to the customer after applying the discount.

Key Concept

Calculating sequential percentage changes by applying a markup to a base price and a subsequent discount to the resulting retail price.
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Topics

Percentage Change, Markups, and Discounts

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