Stephanie M. answered 05/02/15
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Let's find an expression for how much a customer at the warehouse will pay each year. They'll pay a flat fee of $65 plus whatever they paid for the goods. Since they save 20% on all purchases, they only wind up spending 80% of the goods' values. That means, for goods, they pay 0.8x. So warehouse customers spend 0.8x + 65 every year.
If warehouse customers weren't shopping there, they would have paid no membership fee, but they would have paid the full x dollars for goods. So the customers would have spent x every year without the warehouse.
For shopping at the warehouse to save customers money, the warehouse cost must be less than the cost customers would have spent without the warehouse. Equivalently, the cost customers would have spent without the warehouse must be greater than the warehouse cost.
We can write that expression like so:
x > 0.8x + 65