Question

A department store purchases screen-printed t-shirts at a cost of $5 per shirt. They mark up the price 150% (making the selling price 250% of the store's purchase price) and put them on the sales floor. Every month that a t-shirt doesn't sell, the store reduces the selling price by 25%.Which expression shows the selling price after one monthly price reduction?

Answer 1

($5)(2.50) – ($5)(2.50)(0.25)

Answer 2

Kindly check explanation

Explanation:

Given that:

Cost price = $5 per T - shirt

Markup = 150% or cost price

Every month which shirt doesn't sell, selling price drops by 25%

Selling price of Tshirt = (150% * $5) = $7.5

Price after 1 month = (100% - 25%) * $7.5 = $5.625

Hence, the equation could be expressed as :

Price after one month:

(1.5 * $5) - 0.75 * (1.5 * $5)

7.5 - 0.75(7.5)