Asked by Claudia Riano on Jul 04, 2024
Verified
A television set which cost a dealer $375 was marked up 140%. This item was then marked down 40% for quick sale. What was the sale price?
A) $900.00
B) $210.00
C) $360.00
D) $525.00
E) $540.00
Marked Up
Refers to the percentage increase in the price of a good or service over its original cost to achieve a profit.
Marked Down
Refers to a reduction in the selling price of goods or services, typically to clear inventory or to boost sales.
Sale Price
The final amount at which an item is sold after any discounts or promotions.
- Examine the effects of discounts, markdowns, and operational costs on the pricing of products.
Verified Answer
TR
Tyler RondenoJul 04, 2024
Final Answer :
E
Explanation :
The dealer marked up the TV by 140% of $375, which is $525. So, the new price is $375 + $525 = $900. Then, the TV was marked down by 40% of $900, which is $360. Therefore, the sale price is $900 - $360 = $540.
Learning Objectives
- Examine the effects of discounts, markdowns, and operational costs on the pricing of products.