A supermarket purchases chickens wholesale from a farm for $4 each. The store then marks up the chickens 50%. After 10:00 p.m., the supermarket marks down the price of the chickens by 50% to make sure they all sell before the store closes. Which statements are true about the price of a chicken? Check all that apply.
Answer
A
The marked up price of a chicken is $6 before 10:00 p.m.
B
The 50% markdown is taken off the marked-up price.
C
The chickens sell for $4 after 10:00 p.m., because the 50% markup and 50% markdown cancel each other out.
D
The 50% markdown is taken off the $4 wholesale price.
Explanation
A 50% markup on the $4 wholesale price adds $2, so the price before 10:00 p.m. is $6. The markdown is taken from that marked-up price, so after 10:00 p.m. the price is 50% of $6, or $3. Equal percentage increases and decreases do not cancel because they apply to different amounts; the chickens do not sell for $4.
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