SOLUTION:
You belong to a wholesale buying club. You can order items from the club with a markup of 8% over the wholesale price. A local retail store, which gets its merchandise at the sa
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You belong to a wholesale buying club. You can order items from the club with a markup of 8% over the wholesale price. A local retail store, which gets its merchandise at the sa
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Question 153118:
You belong to a wholesale buying club. You can order items from the club with a markup of 8% over the wholesale price. A local retail store, which gets its merchandise at the same wholesale price, offers to sell you those same items at 10% off the shelf price. What does the retail store’s markup have to be for it to be cheaper for you to buy through your club? Show your work and explain your thinking. Answer by vleith(2983) (Show Source):
You can put this solution on YOUR website! Let w be the wholesale price. Let r be the retail shelf price
clubPrice = w * 1.08 (8% markup)
storePrice = 0.9 r (10% off, or 90% of the retail shelf price)
Find the r where the club price is equal to the discounted store price
So r is 120% of w. Which means the store markup must be 20% or more for the club price to be a better deal than the discounted store offer.
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