A hardware store purchases a drill for $80 and marks it up by 60% They then offer a 20% discount on the marked-up price. The store manager calculates the final sale price as $64 The manager's steps are shown below: Calculate the marked-up price: $80+($80⋅0.60)=$128 Apply the discount: $128−($128⋅0.50)=$64 Identify the mistake in the manager's calculation.
Answer
A
The manager applied a 50 percent markup instead of a 60 percent markup.
B
The manager used the wrong initial price.
C
The manager applied the discount to the original price instead of the marked-up price.
D
The manager applied a 50 percent discount instead of a 20 percent discount.
Explanation
The marked-up price is calculated correctly: $80 + ($80 × 0.60) = $128. But the manager subtracts $128 × 0.50, which applies a 50% discount instead of the stated 20% discount. A 20% discount would be $25.60, making the sale price $128 − $25.60 = $102.40. The mistake is applying a 50 percent discount.
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