Percent Applications Math Example 4

Follow the full solution, then compare it with the other examples linked below.

Example 4

hard
A clothing store marks up items by 60%60\% of the wholesale cost and then offers a 25%25\% discount on the retail price. If the wholesale cost is \50$, what is the final selling price, and is it above or below the wholesale cost?

Solution

  1. 1
    Retail price (after markup): 50 \times 1.60 = \80$.
  2. 2
    Discounted price: 80 \times (1 - 0.25) = 80 \times 0.75 = \60$.
  3. 3
    Compare to wholesale: \60 > \5050, so the store still makes a \10$ profit.

Answer

$60 (above the $50 wholesale cost by $10)\$60 \text{ (above the } \$50 \text{ wholesale cost by } \$10\text{)}
A markup followed by a discount does not simply return to the original price. The discount is applied to the higher marked-up price, so even after a 25% discount on an 60% markup, the final price exceeds the wholesale cost.

About Percent Applications

Using percentages to solve real-world problems involving tax, tip, discount, markup, and simple interest.

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More Percent Applications Examples

Example 1 easy

A restaurant bill is [formula]56[formula]15%$ tip. What is the tip amount and the total paid?

Example 2 medium

Emma borrows [formula]2000[formula]4.5%[formula]3$ years. How much total interest does she pay, and

Example 3 easy

A pair of shoes costs [formula]72[formula]8%$ sales tax. What is the final price?

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