Furniture Warehouse bought upright freezers for $1800 less 33 % and 5%. The store's overhead works
out to 30% of cost. The freezers are initially priced so that a profit of 16⅔% of cost will be realized when a freezer is sold at a "15% off"price.
a) What is the initial full rate of markup on cost?
b) During its Scratch-and-Save sale, customers qualify for an extra discount of either 5%, 7%, or 10%. This extra discount appears when the customer scratches a ticket at the time of a purchase. It is added to the basic 15% discount, making the combined discount 20%, 22%, or 25%, respectively. What is the store's profit or loss per freezer at each of these discounts?

Question

Furniture Warehouse bought upright freezers for $1800 less 33  % and 5%. The store's overhead works
out to 30% of cost. The freezers are initially priced so that a profit of 16⅔% of cost will be realized when a freezer is sold at a "15% off"price.
a) What is the initial full rate of markup on cost?
b) During its Scratch-and-Save sale, customers qualify for an extra discount of either 5%, 7%, or 10%. This extra discount appears when the customer scratches a ticket at the time of a purchase. It is added to the basic 15% discount, making the combined discount 20%, 22%, or 25%, respectively. What is the store's profit or loss per freezer at each of these discounts?

Quizplus · Accepted Answer

The Answer of Furniture Warehouse bought upright freezers for $1800 less 33  % and 5%. The store's overhead works
out to 30% of cost. The freezers are initially priced so that a profit of 16⅔% of cost will be realized when a freezer is sold at a "15% off"price.
a) What is the initial full rate of markup on cost?
b) During its Scratch-and-Save sale, customers qualify for an extra discount of either 5%, 7%, or 10%. This extra discount appears when the customer scratches a ticket at the time of a purchase. It is added to the basic 15% discount, making the combined discount 20%, 22%, or 25%, respectively. What is the store's profit or loss per freezer at each of these discounts?

Furniture Warehouse Bought Upright Freezers for $1800 Less 33