Question

DeWitt Company sells a kitchen set for $540. To promote July 4, DeWitt ran the following advertisement:

Beginning each hour up to 4 hours we will mark down the kitchen set 10%. At the end of each hour, we will mark up the set 1%.

Assume Ingrid Swenson buys the set 1 hour 50 minutes into the sale.

What will Ingrid pay?

A: ?

What is the markdown percent?

A: ?

Answer 1

DeWitt Company sells a kitchen set = $540

0 hours Mark down the kitchen set = 10%

At 1 hour, we will mark up the set = 1%.

Ingrid Swenson buys the set 1 hour = 50 minutes

i) Calculating  Ingrid pay  

=$540 * 90% * 101% * 90%

= $540 * 0.9% * 1.01% * 0.9%

= $441.77

ii) Calculating markdown percent

Company sells a kitchen set - Ingrid pay/ Company sells a kitchen set

= $540 - $441.77 / $540

= $98.23 / $540

= 0.18190740741

or

= 0.1819 or 18.19

18.19  Markdown percent

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