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 same

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Question 184096: 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 solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!


Let w be the wholesale price and M be the retail mark-up expressed as a decimal fraction.

The buying club sells for

The retail store sells for

It is less expensive to buy through the club if:




So:











Hence, if the retail store markup is greater than 20%, it is less expensive to buy from the wholesale buying club.

John