Question

Can someone please check to see if I got these right.

A store receives $400 cash after offering a chain discount of 10/10/5 on a good. What was the list price?

$492.20
$519.82
$533.33
$612.00

Answer: $533.33


A merchant buys a good for $275. Their store's operating expenses are 35% of cost. The selling price of the good is $549, but is marked down by 35%. The transaction resulted in a:

net loss of $110.30.
net loss of $60.48.
net loss of $14.40.
net profit of $2.07.

Answer: net loss of $110.30.

Answer 1

For the first problem, I calculated the answer to be $519.82:

net price = original price * net price factor

To calculate the net price factor with a chain discount of 10/10/5, subtract each percentage from 100%:

100% - 10% = 90%
100% - 10% = 90%
100% - 5% = 95%

Now, multiply all the percentages together to get the net price factor:

90% * 90% * 95% = 0.7695

The problem states the net price is $400 (with x being original price), so plug that in to your formula:

400 = 0.7695x
x = $519.82

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For the second problem, I got a net loss of $14.40:

The profit at the beginning of the problem is $0, so begin a simple addition/subtraction problem like this:

0 - 275

Now, it's going to be another loss of profit for the operating expenses, which is 35% of $275 (which is $96.25):

0 - 275 - 96.25

The store is going to get $549 for the good:

0 - 275 - 96.25 + 549

However, the price is marked down 35% (which 35% of the price is $192.15):

0 - 275 - 96.25 + 549 - 192.15

Solve:

0 - ... - 192.15 = -14.40

So, the transaction resulted in a net loss of $14.40.


Hope this makes sense! :)

Answer 2

I do not have the same numbers as yours. How did you get $110.30 for the second one?

1.
400/(1-0.05)/(1-0.10)/(1-0.10)
=519.82

2.
549*(1-0.35)-275*1.35
=-14.40

Answer 3

Thanks guys

Answer 4

You're welcome Cathy!

Answer 5

No problemo! :)