A furniture company calculates

Question

A furniture company calculates the retail price of the furniture it sells by marking up its wholesale cost by 100%. If they had a sale with all items marked down 20% from the retail price, what percentage prot would they make on each item sold during the sale? Suppose instead that they had a Super Sale and marked all items down 50% from the retail price. What percentage prot would they now make on each item sold during the sale?

Answer 1

the wholesale cost is X...

they sell it for 2X less 20%

which is (100%-20%)2x =

80% * 2x

0.8 * 2x

= 1.6x

so they make 60% profit

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they sell it for 2X less 50%

which is (100% - 50%)2x =

50% (2x) =

0.5(2x) =

x

they make no profit