The wholesale cost of a Digital Sound system is $1,850. The original markup was 61% based on selling price. Find the final sale price after the following series of price changes: a markup of 14%, a markup of 47%, and a markdown of 30%. (Round each intermediate selling price to the nearest cent)
A) $5,564.51
B) $2,006.26
C) $3,493.96
D) $1,259.73

Question

Quizplus · Accepted Answer

The original markup of 61% based on selling price means that the selling price is 161% of the wholesale cost. Therefore, the original selling price is $1,850 x 1.61 = $2,986.50.The first markup of 14% increases the selling price to $2,986.50 x 1.14 = $3,406.41.The second markup of 47% increases the selling price to $3,406.41 x 1.47 = $5,007.44.The markdown of 30% decreases the selling price to $5,007.44 x 0.70 = $3,505.21.Therefore, the final sale price is $3,505.21.

The Wholesale Cost of a Digital Sound System Is $1,850