6
QuizMultiple Choice

Markup and Markdown

Question 6 • FowU - Financial Math - B

Ashley runs a hardware store. She has decided to apply a markdown of 15% to one item in order to draw customers into the store, and she will apply a markup of 10% to three different items, which she hopes the customers will purchase after purchasing the marked-down item. She has chosen four candidates for this process: a power drill with an initial price of $51.49, a ceiling fan with an initial price of $64.79, a miniature circular saw with an initial price of $45.99, and a screwdriver set with an initial price of $37.39. After applying the changes, the total cost of purchasing one of each item is $3.77 more than it was before applying the changes. Which item was marked down?

Answer
A
power drill
B
ceiling fan
C
circular saw
D
screwdriver set

Explanation

If the ceiling fan is marked down, its 15% discount is 0.15 × $64.79 = about $9.72. The 10% markups on the other three items total about $5.15 + $4.60 + $3.74 = $13.49. The markups exceed the discount by $13.49 − $9.72 = $3.77, so the ceiling fan was marked down.

AI-written and checked against the verified answer.

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