dewitt company sells a kitchen set for $335. to promote july 4, dewitt ran the following advertisement…

dewitt company sells a kitchen set for $335. to promote july 4, dewitt ran the following advertisement: beginning each hour up to 4 hours we will mark down the kitchen set 11%. at the end of each hour, we will mark up the set 3%. assume ingrid swenson buys the set 1 hour 50 minutes into the sale. required: a. what will ingrid pay? note: round your answer to the nearest cent. ingrid pays. b. what is the markdown percent? note: enter your response as a percentage rounded to 2 decimal places. markdown percent %

dewitt company sells a kitchen set for $335. to promote july 4, dewitt ran the following advertisement: beginning each hour up to 4 hours we will mark down the kitchen set 11%. at the end of each hour, we will mark up the set 3%. assume ingrid swenson buys the set 1 hour 50 minutes into the sale. required: a. what will ingrid pay? note: round your answer to the nearest cent. ingrid pays. b. what is the markdown percent? note: enter your response as a percentage rounded to 2 decimal places. markdown percent %

Answer

Explanation:

Step1: Calculate the price after the markdown

The initial price of the kitchen - set is $P_0 = 335$. The markdown rate is $r_1=0.11$. Since Ingrid buys 1 hour 50 minutes into the sale, there is 1 full - hour markdown. The price after the markdown is $P_1=P_0(1 - r_1)=335\times(1 - 0.11)=335\times0.89 = 298.15$.

Step2: Calculate the price after the markup

The markup rate is $r_2 = 0.03$. The price after the markup is $P = P_1(1 + r_2)=298.15\times(1 + 0.03)=298.15\times1.03=307.1945\approx307.19$.

Step3: Calculate the markdown percent

The original price is $P_0 = 335$ and the final price is $P = 307.19$. The amount of markdown is $A=P_0 - P=335 - 307.19 = 27.81$. The markdown percent $M=\frac{A}{P_0}\times100=\frac{27.81}{335}\times100\approx8.30%$.

Answer:

a. Ingrid pays $307.19 b. Markdown percent: 8.30%