a department store purchases screen - printed t - shirts at a cost of $5 per shirt. the store marks up the…

a department store purchases screen - printed t - shirts at a cost of $5 per shirt. the store marks up the price 150% and puts them on the sales floor. every month that a t - shirt doesnt sell, the store reduces the selling price by 25%. what is the selling price of a t - shirt after one monthly markdown?

a department store purchases screen - printed t - shirts at a cost of $5 per shirt. the store marks up the price 150% and puts them on the sales floor. every month that a t - shirt doesnt sell, the store reduces the selling price by 25%. what is the selling price of a t - shirt after one monthly markdown?

Answer

Explanation:

Step1: Calculate the marked - up price

The cost of each t - shirt is $5. The store marks up the price by 150%. The marked - up price is calculated as $5\times(1 + 1.5)$. $5\times(1 + 1.5)=5\times2.5 = 12.5$

Step2: Calculate the price after markdown

The store reduces the selling price by 25% after one month. The price after markdown is $12.5\times(1 - 0.25)$. $12.5\times(1 - 0.25)=12.5\times0.75 = 9.375$

Answer:

$9.375$