Long Lake Nursery bought fertilizer in bulk in March at $17.92 less 33 1/3%, 14.5%, and 10% per 20 kg bag. The fertilizer is normally marked up by 53% of the selling price. The fertilizer was marked down 42% for an inventory reduction sale in late July. Round your final answers properly to two decimal places, and use these rounded values in the next calculations that require them. a)  What was the sale price? $ ____________  b)  What was the (reduced) markup rate based on the sale price?  ____________ %

Expert Answers

An illustration of the letter 'A' in a speech bubbles

The original price was $17.92.

Calculate the first discount: $17.92*1/3=$5.97

The remaining amount after the first discount is: $17.92-$5.97=$11.95

Calculate the second discount: $11.95*0.145=$1.73

The remaining amount after the second discount is: $11.95-$1.73=$10.22

Calculate the third discount: $10.22*0.10=$1.02

The remaining amount after the third discount is: $10.22-$1.02=$9.20

The price the nursery paid for the fertilizer was $9.20

Calculate the price after markup, assuming the original selling price: $17.92*1.53=$27.42

Calculate the mark down: $27.42*0.42=$11.52

Calculate the price after mark down: $27.42-$11.52=$15.90

a.The sale price was $15.90

Calculate the new markup rate: ` ` ` 1-15.90/9.20=0.73 `

b. The new markup rate was 73%

Approved by eNotes Editorial Team