A furniture store wants to host a sales event to improve its profit margin and to reduce its tax liability before its inventory is taxed at the end of the year. How much profits will the business make on the sales of a couch that is marked up by 1/3 and then sold at a 1/5 off discount if the original price is $2,400?

Question

Mathematics

Jace Hudson

31 March, 14:37

A furniture store wants to host a sales event to improve its profit margin and to reduce its tax liability before its inventory is taxed at the end of the year. How much profits will the business make on the sales of a couch that is marked up by 1/3 and then sold at a 1/5 off discount if the original price is $2,400?

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Jamie Mccullough · Answer 1

The profit will be $160.

Original Price: $2,400

Marked - up: 1/3 of Original Price

Discount : 1/5 of Marked - Up Price

Get the Marked-up price:

$2,400 * 1/3 = 800 - Mark - up

$2,400 + 800 = 3,200 Marked up price

Get Discount Price:

$3,200 * 1/5 = 640 - Discount.

$3,200 - 640 = 2,560 - Discounted Price

Profit = Discounted Price - Original Price

$2,560 - 2,400 = $160 - Profit