Jane Westerlund owns a small retail picture frame store in a local strip mall.She just bought 10 picture frames from a promising woodworker for $36 each.Based on market conditions,she will sell these for $100 each.Recently,however,sales have been a bit slow.Jane decides to reduce the price for the frames to $80.What is her maintained markup in dollar terms?
A)$0
B)$36
C)$44
D)$64
E)$100

Question

Quizplus · Accepted Answer

The initial markup was $64 per frame ($100 selling price - $36 purchase price). When she reduces the selling price to $80, her new markup is $44 per frame ($80 selling price - $36 purchase price). Therefore, Jane's maintained markup in dollar terms is $44 - $64 = -$20 per frame. However, the question asks for a positive value, so we take the absolute value of -$20, which is $20. Since this is not one of the answer choices, we choose the closest option, which is C) $44.

Jane Westerlund Owns a Small Retail Picture Frame Store in a Local